What penalties do DNFBPs face for AML violations in the UAE?
DNFBPs that breach their AML obligations face a graduated range of administrative penalties imposed by their Supervisory Authority. These run from a formal warning, through administrative fines, to being barred from the relevant sector, restrictions on managers, suspension of the activity and ultimately revocation of the licence.
The administrative fine is set at not less than AED 10,000 and not more than AED 5,000,000 for each violation, and the supervisor can impose an increased fine where the same violation recurs within a year. The authority may also require periodic remediation reports and may publish the penalties it imposes. These administrative measures are separate from, and in addition to, any criminal liability that may arise, for example for failing to report a suspicious transaction. The penalty regime gives supervisors flexibility to match the sanction to the seriousness of the breach.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 17(1)(b) sets administrative fines of AED 10,000 to AED 5,000,000 per violation.
· Federal Decree-Law No. 10 of 2025, Article 17(3) allows incremental fines for repeat violations.
For more details, consult the full text of Federal Decree-Law 10 of 2025 or seek guidance from your AML compliance officer.