What is the penalty for giving false beneficial owner information in the UAE?
Anyone who intentionally provides false or misleading information about a beneficial owner faces criminal liability under the 2025 AML Law. Where the false information is given to a competent authority that has requested it, or to a financial institution, DNFBP or virtual asset service provider, the offender can be punished with imprisonment and a fine of not less than twenty thousand dirhams, or with either of these penalties.
This provision targets attempts to hide the real individuals behind a corporate structure, which is one of the most common money laundering techniques. It applies to customers who mislead a regulated business during onboarding as well as to those who mislead supervisors directly.
For compliance teams, the rule reinforces why beneficial owner declarations should be supported by independent verification rather than accepted at face value. If a customer’s stated ownership does not match registry data or other reliable sources, that discrepancy may point to an offence and should be investigated and, where suspicion arises, reported to the Financial Intelligence Unit.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 35 punishes the intentional provision of false or misleading beneficial owner information with imprisonment and a fine of not less than AED 20,000
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.