When does legal professional privilege exempt a UAE lawyer from AML reporting?
UAE law recognises a narrow professional secrecy exemption from the suspicious transaction reporting duty. It applies to lawyers, notaries, other legal professionals, and independent legal auditors, but only where the relevant information was obtained in circumstances subject to professional secrecy, such as while ascertaining the legal position of a client or defending or representing that client in judicial proceedings.
The exemption is deliberately limited. It does not cover information a lawyer receives while actually carrying out a covered transactional service, for example handling client funds, buying or selling property, or forming a company. In those situations the reporting obligation stands. Firms should document why any decision not to report is justified by privilege, because the burden of showing the exemption applies rests with the firm, and misapplying it can expose the firm to penalties.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 18(2) — exempts legal professionals from reporting where information is subject to professional secrecy.
· Federal Decree-Law No. 10 of 2025, Article 18(1) — the underlying reporting duty the exemption qualifies.
For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.