What penalties can be imposed on a legal person under the UAE AML law?
Under Federal Decree-Law No. 10 of 2025, a legal person whose representatives, directors or agents commit money laundering, terrorist financing or proliferation financing on its behalf faces a fine of not less than AED 5 million and not more than AED 100 million, or an amount equal to the value of the criminal property involved, whichever is greater.
For lesser offences under the law, such as breaches of preventive obligations, the fine ranges from AED 200,000 to AED 10 million. Where a legal person is convicted of terrorist financing or proliferation financing, the court must order its dissolution and the closure of its premises; for money laundering, dissolution is discretionary. Separately, the person actually managing the entity can be imprisoned and fined if they were aware of the offence and it resulted from a breach of their duties. These figures represent a sharp increase from the previous regime.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 27 — sets out the criminal penalties applicable to legal persons
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.