Money Laundering Punishment in UAE: Everything You Need to Know

Key Laws Behind Money Laundering Punishment in UAE
UAE anti-money laundering legal framework is well-grounded in law. Here’s a breakdown of the key law for money laundering :

Federal Decree-Law No. (20) of 2018 : This legislation is the pillar of the UAE's money laundering preventative measures. It clearly defines money laundering and outlines the money laundering punishment in UAE. Business or private entities need to comply with stringent measures to avoid illicit financial transactions.
Cabinet Resolution No. (10) of 2019 : Consider this the guideline that realizes the 2018 law. It offers actionable advice for businesses, e.g., how to report suspicious activity and business due diligence.
Federal Penal Law No. 31 of 2021 : This legislation increases the money laundering punishment in UAE and ensures that everybody is in the same page in the matter of prosecuting offences related to money laundering.

Fines Of Money Laundering
AED 1 million or More: For major offenses, like large-scale money laundering or financing terrorism.
AED 200,000 to AED 1 million: It accused individuals of repeatedly transgressing or not having performed suitable AML procedures.
AED 50,000 to AED 200,000: For not complying with procedures, for example, doing it late or with a small violation of compliance.
Additional Punishments
Jail Time: From 1 to 15 years, depending on the seriousness of the offense.
Asset Seizure: Funds and property directly related to money laundering are all subject to confiscation.
Business License Suspension: Company is implicated; the license can be revoked.
How to Report Money Laundering in UAE

Just report it if you see something strange:

Contact the Financial Intelligence Unit (FIU): The FIU, working from the UAE Central Bank, has money laundering responsibility.
Use the go AML Platform: This secure online system makes it easy for businesses and individuals to report suspicious transactions.
Local Law Enforcement: You can also directly contact the police or other responsible authorities.

By reporting, you’re playing an important role in maintaining the UAE’s financial integrity.

Staying Safe and Compliant

Money laundering isn’t just a legal issue; it’s about protecting the integrity of the UAE’s economy. Whether you’re a small business owner, a large corporation, or an individual, staying compliant with AML laws is not just mandatory—it’s good business.

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