What is the penalty for financing of terrorism in the UAE?

UAE
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Financing of terrorism is treated as one of the most serious offences under the UAE AML Law. A person who commits the crime of financing of terrorism is liable to life imprisonment or temporary imprisonment for a term of not less than ten years, together with a fine of not less than AED 1,000,000 and not more than AED 10,000,000, or an amount equivalent to twice the value of the criminal property, whichever is greater.

These penalties are imposed without prejudice to any more severe penalty provided in other laws, and attempting to commit the offence carries the same penalty as the completed crime. The severity reflects the gravity with which the UAE regards terrorist financing and its alignment with international standards. For regulated entities, this underlines why targeted financial sanctions must be implemented without delay, why screening against terrorism and sanctions lists is essential, and why any suspicion of terrorist financing must be reported to the Financial Intelligence Unit immediately, regardless of the transaction amount. Robust screening and prompt reporting are the frontline defences.

Legal Reference (UAE):

For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.

A Guide to Anti-Money Laundering Laws in UAE

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Financing of terrorism is punishable by life imprisonment, or temporary imprisonment of not less than ten years, together with a fine of not less than AED 1,000,000 and not more than AED 10,000,000, or an amount equal to twice the value of the criminal property, whichever is greater.

Two related points. An attempt is punished with the same penalty as the completed offence. And where a legal person commits the offence through its representatives, directors or agents, the fine runs from AED 5,000,000 to AED 100,000,000 or the value of the criminal property, whichever is greater, and the court must order the dissolution of the legal person and closure of its premises. Terrorist financing is also treated as an offence affecting the internal and external security of the State.

Legal Reference (UAE):

· Federal Decree-Law No. 10 of 2025, Article 26(3) and (5): the terrorist financing penalty and equal punishment for an attempt.

· Federal Decree-Law No. 10 of 2025, Article 27(1) and (3): legal person fines and mandatory dissolution; Article 37(4): treatment as a State security offence.

Where the position is finely balanced, document your reasoning and raise it with your compliance officer.

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