Money laundry is defined by the law as willingly handling illegally obtained funds whether it’s obtained via a felony or a misdemeanor. Is it illegal? and what exactly constitutes money laundering?
Read More About: Idea and Important Extradition Requirements
Money laundry: is it illegal in Dubai? anti money laundering uae
Money laundering Dubai is the process of transferring money generated by illegal activity as well as willingly accepting payment in this money or treating this money in accounting books as legitimate funds.
And It is not legal in Dubai.
Severe punishment awaits those who deal in money laundering as per the Federal Decree-law No. (20) of 2018.
The Dubai Financial Services Authority (DFSA) is the regulatory agency responsible for enforcing anti-money laundering (AML) regulations in the Dubai International Financial Centre (DIFC), which is a financial hub in the UAE.
Money laundering UAE Law, Under the DIFC’s AML laws, financial institutions and other regulated entities are required to implement AML policies and procedures, including measures to identify and report suspicious activity.
These laws apply to both local and international financial institutions operating in the DIFC.
In addition, Dubai is a member of the Financial Action Task Force (FATF), an international organization that sets standards and promotes effective measures to combat money laundering and terrorist financing.
As a member, Dubai is committed to complying with the FATF’s recommendations and working to prevent money laundering within its borders.
Overall, it is clear that money laundering is not legal in Dubai and that the government takes steps to prevent and punish this illegal activity.
As per punishment for money laundering in UAE, Article 22 of the Money Laundering Law, everyone found guilty in the charge of money laundering in Dubai and UAE, in general, will be sentenced to prison for a period of 1 year minimum and up to 10 years maximum.
in addition, they will be punished with fines which could range between AED 100,000 to AED 5 million
In the case of repeat offenders, organized criminal groups, or when it’s committed through a non-profit organization, the punishment will go up, imprisonment goes up to 15 years, and fines of AED 300,000 to AED 10 million.
FAQ about anti money laundry UAE | Combatting money laundering
1- What are the red flags for money laundering in the UAE?
Some red flags for money laundering UAE include large cash transactions, unusual financial activity, transactions with high-risk countries, and transactions involving politically exposed persons.
Learn More About: UAE Mediation Centers Handling Dispute Settlements
2- What are the responsibilities of financial institutions in preventing money laundering in the UAE?
Financial institutions in the UAE are required to implement robust AML/CFT measures, including customer due diligence, transaction monitoring, and reporting suspicious activities to the relevant authorities.
3- How does the UAE cooperate with other countries in combating money laundering?
The UAE is a member of various international organizations and initiatives aimed at combating money laundering and terrorism financing, such as the Financial Action Task Force (FATF) and the Egmont Group.
4- How can individuals and businesses protect themselves from money laundering UAE?
Individuals and businesses can protect themselves from money laundering in UAE by being vigilant about their financial transactions, conducting due diligence on potential business partners, and reporting any suspicious activity to the relevant authorities.
Access More Information About: Real Estate Lawyer in Dubai | Dubai’s Top Law Firm
Maher Mahmoud Al Khalaf is one of the best lawyers in our law firm who graduated from Aleppo University in 1995. He’s one of the top lawyers in Dubai because he has more than 20 years of experience in Civil, Commercial, Real Estate, Criminal, and Labor Law.
He worked as a house Lawyer in Qatar. He specialized in Corporate and Commercial law, specifically handling construction-related Cases and commercial cases and he has successfully dealt with numerous cases.