UAE Levies Million-Dollar Sanctions on Individuals Accused of Money Laundering in the Initial Half of 2025
The United Arab Emirates (UAE) has intensified its commitment to combating money laundering and terrorist financing, imposing fines totalling more than Dh42 million ($11.4 million) on private sector entities for non-compliance with anti-money laundering (AML) regulations in the first half of 2025.
This crackdown is part of the UAE's ongoing efforts to bolster its AML compliance regime in line with international standards. The regulatory enforcement system is based on an advanced methodology aimed at ensuring the highest levels of compliance.
The Ministry of Economy and Tourism conducted inspection campaigns primarily targeting the Designated Non-Financial Businesses and Professions (DNFBPs) sector. In total, 1,063 violations were discovered across four categories.
The sectors most impacted within the DNFBP framework include the precious metals and gemstones trade, which had 473 violations resulting in fines totalling Dh20 million. Real estate brokerage firms accounted for 495 violations, attracting fines of around Dh18.5 million. Corporate service providers and auditors had 95 breaches, resulting in fines of over Dh4 million.
In addition, foreign bank branches within the UAE have faced significant penalties for AML compliance breaches. In May 2025, two foreign bank branches collectively faced Dh18.1 million in penalties (Dh10.6 million and Dh7.5 million respectively).
The UAE's dedication to fighting financial crime has been evident in recent years. Last year, the UAE amended its laws on anti-money laundering, and the financing of terrorism and illegal organizations. In September 2024, the UAE announced a nationwide action plan aimed at boosting its fight against illicit financial activity.
Notably, the UAE Central Bank has formed a National Committee for Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations. This committee is tasked with enhancing the UAE's AML and counter-terrorism financing (CTF) efforts, ensuring compliance with international standards.
The UAE's commitment to transparency and regulatory compliance was further underscored by the Securities and Commodities Authority (SCA) when it imposed a record fine of Dh5 million ($1.36 million) on a licensed company for violation of AML regulations. The company, which remains unidentified, engaged in deceptive practices targeting investors within the UAE, falsely suggesting that it was licensed by the SCA with the intent of misappropriating client funds. The case has been referred to judicial authorities.
In conclusion, the UAE's recent enforcement actions reflect its intensified commitment to bolstering its AML compliance regime, targeting both private sector DNFBPs and financial institutions. The UAE's actions align with the International Monetary Fund's assertion that effective policies on anti-money laundering and combating the financing of terrorism are key to the integrity and stability of the international financial system and the economies of nations.
| Sector | Number of Violations | Total Fines (Dh) | |------------------------------------|----------------------|---------------------| | Precious metals & gemstones trade | 473 | 20 million | | Real estate brokerage firms | 495 | 18.5 million | | Corporate service providers & auditors | 95 | Over 4 million | | Foreign bank branches (2) | - | 18.1 million (combined) |
Sources: [1] Gulf News, "UAE imposes over Dh42 million in fines for AML violations in H1 2025", June 30, 2025. [2] Zawya, "UAE Central Bank imposes substantial fines on foreign bank branches for AML compliance breaches", May 31, 2025. [3] Khaleej Times, "UAE's Securities and Commodities Authority imposes record fine for AML violations", June 15, 2025.
The UAE's crackdown on anti-money laundering (AML) non-compliance extends to various sectors, including the precious metals and gemstones trade and real estate brokerage firms, which were fined Dh20 million and Dh18.5 million respectively in the first half of 2025. Corporate service providers and auditors were also penalized over Dh4 million for similar transgressions. Additionally, foreign bank branches in the UAE faced significant penalties for AML compliance breaches, with two branches collectively fined Dh18.1 million in May 2025. The UAE's Securities and Commodities Authority also imposed a record fine of Dh5 million on a licensed company for AML regulation violations.
