🥇Complete List of Fines and Penalties for Money Laundering & Terror Financing in UAE
Why the UAE Takes Money Laundering Seriously
The UAE is a big center for international trade and business. With so many people and companies coming in and out, the risk of financial crime is very high. The government works hard to fight money laundering and terror financing. To do this, the Ministry of Economy set strict penalties for those who break the law. These rules cover many types of businesses and aim to keep the country’s financial system clean.
Main Sectors at Risk for Financial Crimes
The Ministry supervises certain businesses called DNFBPs. This stands for Designated Non-Financial Businesses and Professions. The four main sectors include:
- Corporate service providers
- Auditors
- Brokers and real estate agents
- Dealers in precious metals and gemstones
The UAE government tells these businesses to stay alert for signs of money laundering or terror financing. The goal is to work together with the government to stop illegal activity.
Full List of Penalties and Fines
Penalty of AED 1 Million
A company will have to pay AED 1 million in these cases:
- Dealing with fake banks.
- Opening or keeping bank accounts with fake names.
- Not checking if a client is on a sanctions list before starting or continuing a business relationship.
Penalty of AED 200,000
A company will have to pay AED 200,000 if they:
- Don’t take the right steps to manage high-risk clients.
- Don’t report suspicious transactions when due diligence isn’t possible before starting or continuing a business relationship.
- Don’t reply when the financial information unit asks for more info about a suspicious transaction.
- Tell customers or others about a suspicious case (this is not allowed).
- Don’t use national guidelines to check clients from high-risk countries.
Penalty of AED 100,000
A business may pay AED 100,000 if they:
- Don’t check the risk of crime in their business area.
- Don’t assess risks with new services or activities.
- Skip due diligence before or during a business relationship.
- Don’t check client documents or the real owner’s ID.
- Are late in telling authorities about a suspicious transaction.
- Don’t do special checks for clients who are politically exposed people.
- Don’t keep financial records or track transactions as required.
Penalty of AED 50,000
A business can face a AED 50,000 fine if they:
- Don’t use national risk guidelines for their industry.
- Fail to set up controls, policies, and rules against financial crime.
- Don’t handle low-risk cases correctly.
- Don’t understand the true purpose of a business relationship.
- Don’t know their client’s ownership or business details.
- Don’t keep monitoring a business relationship.
- Don’t hire a compliance officer.
- Don’t maintain records so transactions can be tracked.
- Don’t keep client records for at least five years after business ends.
- Don’t give all requested files or records to the government when asked.
- Don’t train staff on the risks of money laundering and terrorism finance.
Key Points for UAE Businesses
Businesses should always:
- Keep detailed records for every client.
- Do careful checks before starting a business relationship.
- Report any suspicious activity right away.
- Train their staff on how to spot financial crimes.
- Use clear rules and controls to stop risks before they happen.
🥇How Mubarak Al Ketbi (MAK) Auditing Can Protect Your Business
Mubarak Al Ketbi (MAK) Auditing helps companies avoid fines and penalties in Dubai and the UAE. Our team gives advice on money laundering laws, checks your records, and trains your staff. We help you set up strong policies, so you never get caught off guard. When it comes to protecting your business, we make sure you’re not left holding the bag.
For More Information, Contact Us:
- Visit our office at Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Contact/WhatsApp: +971 50 276 2132
- Mubarak Al Ketbi (MAK) Auditing offers compliance, audit, and training services.
- Get professional help with anti-money laundering and financial crime rules.
- We help all businesses stay safe from fines and penalties.
