Decree-law No. 20
to 13 Muharram 1440 H.
FACING MONEY LAUNDERING AND COMBATING THE FINANCING OF TERRORISM AND ILLEGAL
no. 4/2002 dated 22/01/2002,
Khalifa Bin Zayed Al Nahyan, President of UAE,
to the perusal of the Constitution,
Law no. (1) of 1972 Federal Law No. (1) of 1972 Federal Law no. 1 of 1972
of the Ministries and Powers of the Ministers and its amendments;
Law no. (6) of 1985 on Islamic Banks, Financial Institutions and Investment
Law no. (3) of 1987 issuing the Penal Code and its amendments,
Law no. (35) of 1992 issuing the Penal Procedures Code and its amendments;
Law no. (14) of 1995 on fighting narcotics and psychotropic substances and
Law no. (4) of 2000 on the Emirates Securities and Commodities Authority and
Market and its amendments;
Law no. (4) of 2002 on the criminalization of money laundering and combatting of
the financing of terrorism and its amendments;
Law no. (8) of 2004 on the Financial Free Zones;
Law (13) of 2004 on the Supervision of Import/Export and Transit of Rough
Diamonds and its amendments;
Law no. (1) of 2006 on the Electronic Commerce and Transactions;
Law no. (39) of 2006 on the International Judicial Cooperation on Criminal
Law no. (51) of 2006 Combating Crimes of Human Trafficking and its
Law no. (6) of 2007 on the establishment of the Insurance Authority and the
regulation of its operations and its amendments;
Law no. (2) of 2008 on the National Societies and Associations of Public
Law no. (6) of 2010 on the Credit Information;
Law no. (5) of 2012 on the Prevention of Information Technology Crimes and
Decree-Law no. (5) of 2013 on weapons, ammunitions, explosives and
Law no. (7) of 2014 on Combating Terrorism Offences;
Law no. (2) of 2015 on Commercial Companies and its amendments;
Law no. (8) of 2015 on the Federal Customs Authority;
Law no. (11) of 2015 on the supervision of trading and stamping of precious
metals and stones;
Law no. (7) of 2017 on Tax Procedures;
Decree-Law no. (7) of 2017 on Excise Tax;
Decree-Law no. (8) of 2017 on the Value Added Tax;
Decree-Law no. (14) of 2018 regarding the 'Central Bank and the Organisation
Institutions and Activities;
based on the proposal made by the Minister of Finance and the approval of the
issued the following Decree-Law:
application of the provisions of the present Decree-Law, the following terms and
expressions shall have the meanings assigned thereto unless the context requires
United Arab Emirates
Ministry of Finance
Minister of Finance
Central Bank of the UAE
Governor of Central Bank
National Committee for Combating Money Laundering and the Financing of Terrorism
and Illegal Organisations
Financial Intelligence Unit
Federal and local authorities which are entrusted by
legislation to supervise financial institutions, designated non-financial
businesses and professions and non-profit organisations or the competent
authority in charge of approving the pursuit of an activity or a profession in
case a supervisory authority is not assigned by legislations.
Federal and local authorities which are entrusted under
applicable legislation to combat, search, investigate and collect evidences on
the crimes including AML/CFT crimes and financing illegal organisations.
The competent government authorities in the State entrusted
with the implementation of any provision of this Decree Law.
Any act constituting an offense or misdemeanour under the
applicable laws of the State whether this act is committed inside or outside the
State when such act is punishable in both countries.
Any of the acts mentioned in Clause (1) of Article (2) of the
Any of the acts mentioned in Articles (29, 30) of Federal
Law no. (7) of 2014.
Organisations whose establishment is criminalized or which
exercise a criminalized activity.
Any physical or legal action aiming at providing
funding to an illegal organisation, or any of its activities or its
Money laundering crime and related predicate offences, or financing of terrorism
or illegal organisations.
Assets in whatever form, tangible or intangible, movable or immovable including
national currency, foreign currencies, documents or notes evidencing the
ownership of those assets or associated rights in any forms including electronic
or digital forms or any interests, profits or income originating or earned from
Funds generated directly or indirectly from the commitment of any crime or
felony including profits, privileges, and economic interests, or any similar
funds converted wholly or partly into other funds.
Any means used or intended to be used to commit an offence or
Transactions related to funds for which there are
reasonable grounds to believe that they are earned from any misdemeanour or
felony or related to the financing of terrorism or of illegal organisations,
whether committed or attempted.
Temporary attachment over the moving, conversion, transfer,
replacement or disposition of funds in any form, by an order issued by a
Permanent expropriation of private funds or proceeds or instrumentalities by an
injunction issued by a competent court.
Anyone who conducts one or several of the activities or
operations defined in the Implementing Regulation of the present Decree Law for
the account of /or on behalf of a client.
Nonfinancial Businesses and Professions:
Anyone who conducts one or
several of the commercial or professional activities defined in the Implementing
Regulation of this Decree Law.
Any organized group, of a continuing nature set for a
temporary or permanent time period, comprising natural or legal persons or not
for profit legal arrangements for the purpose of collecting, receiving or
disbursing funds for charitable, religious, cultural, educational, social,
communal or any other charitable activities.
A relationship established by means of a contract between
two or more parties which does not result in the creation of a legal personality
such as trust funds or other similar arrangements.
Any person involved in or attempts to carry out any of the activities specified
in the Implementing Regulations of this Decree Law with one of the financial
institutions or designated nonfinancial businesses and professions.
The natural person who owns or exercises effective ultimate
control, directly or indirectly, over a client or the natural person on whose
behalf a transaction is being conducted or, the natural person who exercises
effective ultimate control over a legal person or legal arrangement
All disposal or use of Funds or proceeds including for example: deposits,
withdrawals, conversion, sales, purchases, lending, swap, mortgage, and
The entity in charge of supervising the register of commercial names for all
types of establishments registered in the UAE.
Due Diligence (CDD):
The process of identifying or verifying the
information of a Client or Beneficial owner, whether a natural or legal person
or a legal arrangement, and the nature of its activity and the purpose of the
business relationship and the ownership structure and control over it for the
purpose of this Decree-Law and its Implementing Regulation.
The process by which a competent authority allows the entering
or transferring of illegal or suspicious funds or crime revenues to and from the
UAE for the purpose of investigating a crime or identifying the identity of its
The process of search and investigation conducted by one of
the judicial impoundment officer by impersonating or playing a disguised or
false role in order to obtain evidence or information related to the
Any person, having the knowledge that the funds are the proceeds of a felony or
a misdemeanour, and who wilfully commits any of the following acts, shall be
considered a perpetrator of the crime of Money Laundering:
Transferring or moving proceeds or conducting any transaction with the aim of
concealing or disguising their Illegal source.
Concealing or disguising the true nature, source or location of the proceeds as
well as the method involving their disposition, movement, ownership of or rights
with respect to said proceeds.
Acquiring, possessing or using proceeds upon receipt.
Assisting the perpetrator of the predicate offense to escape punishment.
The crime of Money Laundering is considered as an independent crime. The
punishment of the perpetrator for the predicate offence shall not prevent his
punishment for the crime of Money Laundering.
Proving the illicit source of the proceeds should not constitute a prerequisite
to sentencing the perpetrator of the predicate offence.
prejudice to the provisions of Federal Law No. (3) of 1987 referred to, and
Federal Law No. (7) of 2014 referred to herein:
Is guilty of the crime of financing terrorism anyone who intentionally commits
any of the following:
Any of the acts specified in Clause (1) of Article (2) of the present
Decree-Law, if he is aware that the proceeds are wholly or partly owned by a
terrorist organisation or terrorist person or intended to finance a terrorist
organisation, a terrorist person or a terrorism crime, even if it without the
intention to conceal or disguise their illicit origin.
Providing, collecting, preparing or obtaining Proceeds or facilitating their
obtainment by others with intent to use them, or while knowing that such
proceeds will be used in whole or in part for the commitment of a terrorist
offense, or if he has committed such acts on behalf of a terrorist organisation
or a terrorist person while aware of their true background or purpose.
Is guilty of financing illegal organisations crime anyone who intentionally
commits any of the following:
Any of the acts specified in Clause (1) of Article (2) of this Decree-Law, if he
is aware that the proceeds are wholly or partly owned by an illegal organisation
or by any person belonging to it or intended to finance any of them, even if
without the intention to conceal or disguise their illicit origin.
Providing, collecting, preparing, obtaining Proceeds or facilitating their
obtainment by others with intent to use them, or while knowing that such
proceeds will be used in whole or in part for the benefit of an Illegal
organisation or of any of its members, with knowledge of its true background or
legal person shall be criminally responsible for the crime if it is committed in
its name or for his account intentionally, without prejudice to the personal
criminal responsibility of the perpetrator and the administrative penalties as
prescribed by law.
The Governor or his delegate shall have the right to freeze suspicious funds
deposited at financial institutions for no more than (7) seven working days, in
accordance with the rules and controls stipulated in the Implementing Regulation
of the present Decree-Law, renewable by order of the public prosecutor or his
The Public Prosecution and the competent court, as the case may be, shall
request the identification, tracking, or evaluation of suspicious funds,
proceeds and instrumentalities or of whatever is of equivalent value or seizing
or freezing them if they are the result of, or in connection with, the crime
without pre-advising the owner and issuing a travel ban until the investigation
or trial is completed.
The Public prosecution and the competent court, as the case may be, when need
be, shall take the necessary decision to prohibit trading or disposing of such
funds, proceeds and instrumentalities and take the necessary actions to prevent
any act aiming at evading related freezing or seizing orders, without prejudice
to the rights of bona fide third parties.
All freezing orders of funds held by financial institutions licensed by the
CBUAE may be only be executed through the CBUAE.
Any grievance against the Public Prosecution's decision to freeze or seize shall
be filed in accordance with the provisions of the present Article before the
competent court in whose jurisdiction the public prosecution issuing the
decision is located. If the grievance is rejected, a new one may be lodged
only after the expiry of three months from the date of rejection of the previous
one, unless there is a serious reason to do so before the expiry of that
The grievance shall be file by virtue of a report to be submitted to the
competent court. The president of the court shall set a date to review the
report and notify the plaintiff and any concerned parties of the date. The
public prosecution shall submit a memorandum expressing its opinion on the
grievance. The court shall issue its decision on this grievance within no more
than (14) fourteen business days from the date of its submission.
The Public prosecution and the competent court, as the case may be, shall
appoint whomever they find suitable to manage the funds, proceeds and
instrumentalities seized, frozen or confiscated, also allowing the receiver to
sell or dispose of it, even before the issuance of a court decision if needed.
The proceeds of the sale shall be transferred to the UAE treasury in case of a
final judgment of conviction. These funds shall be earmarked to any rights
awarded legally to any party acting in good faith, proportionately to its
The Implementing Regulation of the present Decree-Law shall define the rules and
procedures for implementing the dispositions of the present Article.
Without prejudice to the provisions of Article (5) of this Decree-Law, no
criminal proceedings shall be instituted against the perpetrator of money
laundering, financing terrorism, or financing of illegal organisations in
accordance with the provisions of this Decree-Law except by the public
prosecutor or his delegate.
The Public prosecutor or his delegate and the competent court as the case may be
shall issue a decision to take the necessary procedures to protect the
intelligence information and the means and methods of obtaining such information
or instruct the competent authorities to protect the witnesses, or the
undisclosed sources, the accused or other parties involved in the case if there
is a serious threat to their safety.
The Public prosecution may, sua sponte or upon the request of the law
enforcement authorities, and should there be sufficient evidence of the
occurrence of the crime, shall request direct access to accounts, records and
documents held by third parties and request access to the stored data in the
computer system and information technology programs, memorandums,
correspondences and packages, identify track and seize the funds, control
the accounts, issue travel bans and other procedures aiding in uncovering the
crime and its perpetrators without prejudice to the legislation applicable to
The Law Enforcement Authorities may conduct undercover operations and adopt
other investigative methods and initiate the controlled delivery operation aimed
at detecting the crime or its evidence or identifying the source and destination
of the funds, proceeds or instrumentalities or arresting the perpetrators
without prejudice to the legislations applicable in the UAE.
Any person involved in an undercover operation or a controlled delivery
operation by Law Enforcement Authorities or any act that it is punishable under
law shall not be held criminally responsible unless such person has instigated
the perpetration of the crime or exceeded the powers granted to them by the Law
Enforcement Authorities, or instigated the perpetration of the crime.
The Competent authorities in the UAE shall keep comprehensive statistics on the
reports of suspicious transactions, investigations and crime-related judgments,
seized, frozen or confiscated funds, international cooperation requests and any
statistics related to the efficiency and sufficiency of crime combating
person shall disclose whenever he brings into the UAE or take out thereof any
currency or bearer negotiable instruments or precious metals or stones of value,
in accordance with the disclosure system issued by the Central
shall establish an independent “Financial Intelligence Unit” (FIU)
to which suspicious transaction reports, information on all financial
institutions and designated nonfinancial businesses and professions shall be
sent exclusively for consideration and analysis and referral to the competent
authorities, either automatically or upon request. The Financial Intelligence
Unit shall have competence over the following:
Requesting the financial institutions and designated nonfinancial businesses and
professions and the competent authorities to submit any information or further
documentation related to the received reports and information and other
information deemed necessary for FIU to perform its duties on schedule and in
the form determined by the Unit.
Exchanging information with its counterparts in other countries, with respect to
Suspicious Transactions Reports (STR) or any other information to which the FIU
has exclusive access or is the exclusive recipient directly or indirectly on the
basis of international agreements to which the State is a party or bilateral
agreements signed by the FIU with its counterparts governing bilateral
cooperation or conditional upon reciprocity. The FIU may communicate to its
counterparts its findings derived from the use of the information provided by
the counterparts and the results of the analysis conducted based on this
information. Such information shall be used only for the purposes of combating
the crime and shall not be disclosed to third parties without the FIU’s
Establish a database or a special register to record all available information
and to implement data privacy and data security procedures to protect this
information including procedures for handling, archiving transferring and
accessing the data, and make sure that access to its premises, its data base and
its technology systems is restricted.
Any other dedicated activities to be specified in the Implementing Regulation
attached to the present Decree-Law.
The Public prosecution may seek the opinion of the FIU about incoming reports it
receives related to cases of money laundering, financing of terrorism and of
Law Enforcement Authorities shall be responsible for receiving and following-up
on suspicious transactions reports received from the FIU and gathering related
Law Enforcement Authorities may obtain the information that it deems necessary
to perform its duties from the relevant authorities as stipulated under the
Implementing Regulation of the present Decree-Law.
committee chaired by the Governor, called "National Committee for Combating
Money Laundering and the Financing of Terrorism and Illegal Organisations",
shall be established by virtue of the provisions of this Decree-Law. A decision
on the formation of the Committee shall be issued by the Minister.
Committee shall have the following competences:
Preparing and developing a national strategy to combat crime and proposing
related regulations, policies and procedures in coordination with the competent
authorities, and monitoring their implementation.
Determining and assessing the risks of the crime on the national level.
Coordinating with the relevant authorities and referring to related
international sources of information in order to identify high-risk countries in
relation to money laundering and financing of terrorism and instructing the
supervisory authorities to ensure the adherence to the required due diligence
procedures by financial institutions, designated nonfinancial businesses and
professions, and non-profit organisations which are under their supervision.
Facilitating the exchange of information and coordination among the various
bodies represented therein.
Collecting and analysing statistics and other information provided by the
Competent Authorities to assess the effectiveness of their Regulations on
combating Money laundering, Terrorism financing and financing of illegal
Representing the State in international forums related to Money
Proposing the Implementing Regulation covering the work of the Committee, and
submitting it to the Minister for approval.
Any other matters referred to the Committee by Competent Authorities in the UAE.
Supervisory Authorities shall, each within the scope of its competence, carry
out supervision, monitoring and follow up to ensure compliance with the
provisions provided for in the present Decree-Law and its Implementing
Regulation and shall have in particular, the following competences:
Conduct a risk assessment on the likelihood of the perpetration of a Crime
within the financial institutions, designated nonfinancial businesses and
professions and non-profit organisations.
Conduct Control and audit inspections over financial institutions, designated
nonfinancial businesses and professions and non-profit organisations, both
remotely and on site.
Issue the decisions related to the administrative penalties in accordance with
the provisions of this Decree-Law and its Implementing Regulation, the grievance
mechanism, and keep statistics of measures taken and penalties imposed.
Any other specialized activities stipulated in the Implementing Regulation of
the present Decree-Law.
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
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.
Banning the violator from working in the sector related to the violation for the
period determined by the supervisory authority.
Constraining the powers of the Board members, supervisory or executive
management members, managers or owners who are proven to be responsible of the
violation including the appointment of temporary inspector.
Arresting Managers, board members 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.
Arrest or restrict the activity or the profession for a period to be determined
by the supervisory authority
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.
Financial institutions and designated nonfinancial businesses and professions
shall, upon suspicion or if they have reasonable grounds to suspect a
transaction or funds representing all or some proceeds, or suspicion of their
relationship to the Crime or that they will be used regardless of their value,
to inform the Unit without delay, directly and provide the Unit with a detailed
report including all the data and information available regarding that
transaction and the parties involved, and to provide any additional information
required by the Unit, with no right to object under the confidentiality
notaries, other legal professionals and independent legal auditors shall be
exempted from this provision if the information related to these operations have
been obtained subject to professional confidentiality.
Implementing Regulation of the present Decree-Law shall determine the rules,
controls and cases of the obligation to report suspicious transactions
Financial institutions and designated nonfinancial businesses and professions
Identify the crime risks within its scope of work as well as continuously
assess, document, and update such assessment based on the various risk factors
established in the Implementing Regulation of this Decree-Law and maintain a
risk identification and assessment analysis with its supporting data to be
provided to the Supervisory Authority upon request.
Take the necessary due diligence measures and procedures and define their scope,
taking into account the various risk factors and the results of the national
risk assessment and retain the records received during the implementation of
this process. The Implementing Regulation of the present Decree-Law shall
specify the cases in which such procedures and measures are applied, and the
conditions for deferring the completion of customer or real beneficiary identity
Refrain from opening or conducting any financial or commercial transaction under
an anonymous or fictitious name or by pseudonym or number, and maintaining a
relationship or providing any services to it.
Develop internal policies, controls and procedures approved by senior management
to enable them to manage the risks identified and mitigate them, and to review
and update them continuously, and apply this to all subsidiaries and affiliates
in which they hold a majority stake; the Implementing Regulations of this
Decree-Law shall specify what should be included in said policies, controls and
Prompt application of the directives when issued by the competent authorities in
the state for implementing the decisions issued by the UN Security Council under
Chapter (7) of UN Convention for the Prohibition and Suppression of the
Financing of Terrorism and Proliferation of weapons of mass destruction, and
other related directives.
Maintain all records, documents, and data for all transactions, whether local or
international, and make this information available to the competent authorities
promptly upon request, as stipulated in the Implementing Regulation of this
Any other obligations stipulated in the Implementing Regulation of this
For the purposes of this Decree-Law, the Implementing Regulation of this
Decree-Law shall regulate:
Obligations of non-profit organisations.
Retaining information and records by the registrar, to be provided upon request
and taking procedures for access to the public.
Retaining information and records by the legal person and legal arrangement, and
making it available upon request.
authorities shall abide by the confidentiality of the information obtained in
relation to suspicious transaction or the crimes provided for in this
Decree-Law, and not disclose them except to the extent necessary for use in
investigations, prosecutions or cases in violation of the provisions of this
The competent judicial authority shall, upon request of a judicial authority of
another country bound by an enforceable agreement with the UAE or by virtue of
the reciprocity principle, provide judicial assistance in relation to
investigation, court trials or procedures relevant to the crime and issue orders
Identify, freeze, seize or confiscate any funds, proceeds and instrumentalities
generated from the crime, used or intended to be used in the crime or take any
other procedures applicable under the enforceable legislations in the UAE,
including, to provide records retained by financial institutions, or designated
nonfinancial businesses and professions or non-profit organisations, to inspect
persons and buildings, to collect witnesses’ statements, gather evidences,
use investigative methods including undercover missions, intercepting
communications, collecting statements and electronic data and controlled
Extradite, handover and handback persons and items relevant to the crime in a
prompt manner in accordance with the legislations applicable in the UAE.
The competent authorities shall exchange information related to the Crime
promptly with the foreign authorities, respond to requests made by any competent
entity in the foreign countries which are bound by an applicable convention with
the UAE or in accordance with the reciprocity principle. The competent
authorities shall gather information from the relevant authorities in the UAE
and take the necessary action to ensure the confidentiality of the information
is used only for its intended purpose stated in the request for information and
in accordance with applicable legislations in the UAE.
Competent Authorities shall give the priority to requests for international
cooperation related to countering money laundering and combating terrorism
financing and ensure prompt handling of those requests and take efficient
measures to ensure the confidentiality of the information received.
In application of the present Decree-Law, the request of international
cooperation shall not be rejected based on any of the following grounds:
That the crime involves tax and financial affairs
That the crime is political or related to politics.
That the confidentiality provisions apply to financial institutions and
designated nonfinancial businesses and professions without prejudice to the
legislations applicable in the UAE.
That the request is connected to a crime under investigation or judicial
prosecution in the UAE unless the request will impede on the investigation or
Any other cases mentioned in the Implementing Regulation hereof.
The rules the process and procedures governing international cooperation are
contained in the Implementing Regulation of this Decree-Law.
court injunction or court decision providing for the confiscation of funds,
proceeds or instrumentalities relating to money-laundering, terrorist financing
or financing of illegal organisations issued by a court or judicial authority of
another State with which the State has a ratified Convention may be
imposition of penalties provided for in this Decree-Law shall not prejudice any
harsher penalty provided for in any other law.
person who commits or attempts to commit any of the acts set forth in Clause (1)
of Article 2 of this Decree-Law shall be sentenced to imprisonment for a period
not exceeding ten years and to a fine of no less than (100,000) AED one
hundred thousand and not exceeding (5,000,000) AED five Million or either one of
these two penalties.
temporary imprisonment and a fine of no less than AED 300,000 (three hundred
thousand dirham) and no more than AED 10,000,000 (ten million dirham) shall be
applied if the perpetrator of a money laundering crime commits any of the
If he abuses his influence or the power granted to him by his profession or
If the crime is committed through a non-profit organisation.
If the crime is committed through an organized crime group.
An attempt to commit a money laundering offense shall be punishable by the full
penalty prescribed for it.
A life imprisonment sanction or temporary imprisonment of no less than (10) ten
years and penalty of no less than AED 300,000 (three hundred thousand dirham)
and no more than AED 10,000,000 (ten million dirham) is applied to anyone who
uses Proceeds for terrorist financing.
A temporary imprisonment sanction and a penalty of no less than AED 300,000
(three hundred thousand dirham) and no more than AED 10,000,000 (ten million
dirham) shall be applicable to anyone who uses the Proceeds in financing illegal
The Court may commute or exempt from the sentence imposed on the offenders if
they provide the judicial or administrative authorities with information
relating to any of the offenses punishable in this article, when this leads to
the disclosure, prosecution, or arrest of the perpetrators.
A penalty of no less than AED 500,000 (five hundred thousand) and no more than
AED 50,000,000 (fifty million dirham) shall apply to any legal person whose
representatives or managers or agents commit for its account or its name any of
the crimes mentioned in this Decree-Law.
If the legal person is convicted with terrorism financing crime, the court will
order its dissolution and closure of its offices where its activity is
Upon issuance of the indictment, the court shall order the publishing of a
summary of the judgment by the appropriate mean at the expense of condemned
and a fine of no less than AED 100,000 (one hundred thousand) and no more than
AED 1,000,000 (one million dirham) or any of those two sanctions is applied to
anyone who violates on purpose or by gross negligence the provision Article (15)
of this Decree Law.
for no less than six months and a penalty of no less than AED 100,000 (one
hundred thousand dirham) and no more than AED 500,000 (five hundred thousand
dirham) or any of these two sanctions shall apply to anyone who notifies or
warns a person or reveals any transaction under review in relation to suspicious
transactions or being investigated by the Competent Authorities.
The court shall, once the perpetration of the crime is verified, confiscate the
Funds from the crime site, proceeds and instrumentalities used or intended to be
used in the crime.
Any funds owned by the perpetrator with an equivalent value to the funds and
Proceeds mentioned in paragraph (a) of this clause if it fails to confiscate
The confiscation shall be imposed irrespective of whether the funds, Proceeds,
or Instrumentalities are owned by or in possession of the perpetrator or a third
party without prejudice to the rights of third party acting in good faith.
In the cases of the death of the accused in a crime punishable under the Decree
Law and not being able to identify the owner of the assets involved in the crime
shall not prevent the public prosecution from referring the case file to the
competent court to issue an order to confiscate the seized funds, proceeds and
instrumentalities if it is established that they were related to the
Without prejudice to the rights of bona fide third parties, any contract or act
where the parties, or any one of them or otherwise are aware that such contract
or act aims at impacting the ability of the competent authorities to enforce the
seizure, freezing or the execution of the confiscation order, shall be
authorities, FIU, Law Enforcement Authorities, designated nonfinancial
businesses and professions, their board members, employees and legally
authorized representatives are exempted from criminal, civil or administrative
responsibility in relation to their providing any requested information or
violating any obligation under legislative, contractual and administrative
directives aimed at securing confidentiality of information unless the
disclosure is made in bad faith or with the intent of causing damages to
or a fine of no less than AED 50,000 (fifty thousand dirham) and no more than
AED 5,000,000 (five million dirham) shall be applied to any person who violates
the instruction issued by the Competent authority in the UAE for the
implementation of the directives of UN Security Council under Chapter (7) of UN
Convention for the Suppression of the Financing of Terrorism and Proliferation
of Weapons of Mass Destruction and other related decisions
If any foreigner is convicted of a money laundering crime or any offence
mentioned in this Decree-Law, and is given a sanction restricting his freedom,
he must be deported from the UAE.
Without prejudice to Clause (2) of this article, if any foreign person is
convicted for other criminal offences provided hereunder this Decree-Law, and is
given a sentence restricting his freedom, the court may decide to deport him
from the UAE or order him to be deported instead of imposing a sanction
restricting his freedom.
The criminal case shall not be subject to the statute of limitations for money
laundering or financing terrorism or illegal organisations crimes. The sanctions
shall not lapse with time or with the lapse of any related civil legal cases due
to statute of limitations.
This Decree Law shall not prejudice to the refereed Federal Law (7) of
The Financing of illegal organisations is considered a crime if its purpose is
to undermine the internal security of the State or its vital interests thereof
and terrorism financing crime are considered as crimes intended to undermine the
internal and external security of the State.
and a fine or one of the two penalties to anyone who intentionally fails to
disclose or refrains from providing additional information upon request from him
or deliberately conceals information that must be disclosed or deliberately
presents incorrect information, in violation of the provisions provided for in
Article 8 of this Decree-Law. Upon conviction, the Court may rule on the
confiscation of seized funds without prejudice to the rights of others acting in
or a fine of no less than AED 10,000 (ten thousand dirhams) and no more than AED
100,000 (one hundred thousand dirhams) shall be applied to any person who
violates any other provision of this Decree-Law.
appointed by a decision of the Minister of Justice, in coordination with the
Governor, shall have the status of law enforcement officers in proving acts that
are in violation of the provisions of this Decree Law or its Implementing
Regulations or the decisions issued thereunder.
Cabinet shall issue the Implementing Regulation of this Decree-Law based upon
the proposal of
Any provision that violates or conflicts with the provisions of this Decree-Law
shall be revoked.
Federal Law no. (4) of 2002 on the criminalization of money laundering and
combatting of the financing of terrorism shall be
present Decree-Law shall be published in the Official Gazette to be entered into
effect one month from the date of publication.
by us in the Presidential Palace
in Abu Dhabi:
On 13 Muharram 1440
Corresponding to 23/09/2018
Zayed Al Nahyan
President of the
United Arab Emirates
The present Federal Decree-Law was published
in the Official Gazette, issue no. 637 (Annex), p. 151.