What is tipping off and what is the penalty under UAE AML law?
Tipping off is the act of warning a customer or another person that a suspicious transaction has been or may be reported, or revealing that the competent authorities are conducting inquiries or investigations. Information obtained in relation to suspicious transactions is treated as confidential under the UAE AML law and may only be disclosed to the extent necessary for investigations or proceedings, or where otherwise permitted by law.
Federal Decree-Law No. 10 of 2025 makes tipping off a criminal offence. Any person who notifies or warns another person, discloses information about transactions under review, or reveals that authorities are investigating, in breach of the confidentiality provisions, is punishable by imprisonment and a fine of not less than fifty thousand dirhams, or by either penalty. Compliance teams must therefore handle suspicious transaction reports discreetly and avoid alerting the customer, while still completing the transaction in the ordinary course unless instructed otherwise by the Financial Intelligence Unit.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 24 — confidentiality of suspicious transaction information.
· Federal Decree-Law No. 10 of 2025, Article 29 — penalty for tipping off.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.