UAE law gives reporting entities and their people broad protection when they report in good faith. No criminal, civil or administrative liability attaches to financial institutions, DNFBPs, virtual asset service providers, or their board members, employees and authorised representatives, for furnishing required information or for breaching a confidentiality restriction in doing so.
This safe harbour applies even if the person was not fully aware of the nature or actual occurrence of the crime. The only exception is where it is proven that the report was made in bad faith with the intent to harm others. The protection removes a common concern, namely fear of being sued for breaching customer confidentiality, and it means staff should be encouraged to escalate and report genuine suspicions promptly. A well-documented, good-faith reporting culture both satisfies the law and shields the firm and its employees from liability.
Legal Reference (UAE):
- Federal Decree-Law No. 10 of 2025, Article 37(1) — no criminal, civil or administrative liability for good-faith reporting, unless done in bad faith to harm others.
- Federal Decree-Law No. 10 of 2025, Article 18 — the underlying obligation to report suspicious transactions to the Unit.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.