Penalties for Money Laundering Crime in UAE

This article discusses Federal Decree by Law No 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations in United Arab Emirates. Here we will see Penalties for Money Laundering Crime in UAE in detail.

The Supervisory authority shall impose the following administrative penalties on the financial institutions, designated nonfinancial businesses and professions and non-profit organisations in case they violate the present Decree-Law and its Implementing Regulation:

a) Warning

b) Administrative penalties of no less than AED 50,000 (fifty thousand dirham) and no more than AED 5,000,000 (five million dirham) for each violation.

c) Banning the violator from working in the sector related to the violation for the period determined by the supervisory authority.

d) Constraining the powers of the Board of Directors, supervisory or executive management members, managers or owners who are proven to be responsible of the violation including the appointment of temporary inspector.

e) Suspending Managers, Board of Directors, and supervisory and executive management members who are proven to be responsible of the violation for a period to be determined by the Supervisory Authority or request their removal.

f) Suspend or restrict the activity or the profession for a period to be determined by the supervisory authority

g) Cancel the License.

Except for paragraph (g) of Clause (1) of this Article, The Supervisory Authority may upon imposing the administrative penalties, request regular reports on the measures taken to correct the violation.

In any case, the Supervisory Authority shall publish the administrative penalties through various means of publication.

The imposition of penalties provided for in this Decree-Law shall not prejudice any harsher penalty provided for in any other law.