AML/CFT New Law: What has changed?
Criminals use complex systems to move illegal funds across borders, hiding them in plain sight. These activities damage trust in financial systems, hurt legitimate businesses, and can even fund violence.
Over time, as technology grew and new digital assets appeared, these crimes also became more advanced. The older laws could not always keep up. Regulators and enforcement bodies faced growing challenges in tracing virtual assets, shell companies, and hidden ownership structures.
To address these gaps, the UAE introduced Federal Decree-Law No. (10) of 2025.This law repeals and replaces Federal Decree‑Law No. 20 of 2018 and brings major changes to strengthen Anti-Money laundering (AML) and counter-terrorism financing (CFT) efforts. It modernises the system, increases transparency, and gives more power to regulators and enforcement agencies to act fast and effectively.
Businesses subject to AML regulations need to get in touch with AML consultants in the UAE, like JCA (Jitendra Chartered Accountants), so that they can act according to the new AML law just launched.
Background and Purpose of the New AML Law
The law entered into force on 14 October 2025. Its main purpose is to make the UAE’s financial system stronger and more transparent. It aligns the country’s rules with the Financial Action Task Force (FATF) 40 recommendations made in June 2025.
The Decree-Law also introduces criminalisation of proliferation financing and arms financing (PF), including the financing of weapons of mass destruction and dual-use goods or technology. It promotes better coordination among all national authorities, improves data-sharing, and ensures that all institutions follow a clear, risk-based approach.
Stronger Institutional Structure
One of the biggest updates is the formalisation of a Supreme Committee for Supervising the National Strategy to Combat Money Laundering and Terrorism Financing (the ‘Supreme Committee’) affiliated with the Presidency, supervising the National Committee for Combating Money Laundering, Terrorism Financing and Financing of Illegal Organizations (‘National Committee’).
A Supreme Committee now oversees the National Committee, improving cooperation between ministries, regulators, and law enforcement agencies.
This clear structure eliminates overlap between authorities and increases accountability. Each supervisory body now has well-defined roles and reporting duties for AML/CFT regulation in the UAE.
Wider Coverage and Updated Definitions
The new law expands the definition of key terms and the range of entities covered.
It explicitly includes:
- Virtual Assets (VAs)and Virtual Asset Service Providers (VASPs)
- Trusts and nominees
- Non-profit organisations
- High-risk Designated Non-Financial Businesses and Professions (DNFBPs)
It also strengthens the rules for identifying and verifying Beneficial Owners (UBOs), the real people behind companies or other entities. Businesses must maintain accurate ownership data and share it with authorities when requested.
This wider scope ensures that no channel of finance, whether traditional or digital, is left unchecked. Learn whether or not you fall under the scope with the help of our AML consultants in the UAE.
Improved Reporting and FIU Powers
The Financial Intelligence Unit (FIU) now plays a central role with expanded powers. It can suspend suspicious transactions for up to 30 days without prior notice to the parties involved.
All financial institutions (FIs), DNFBPs and VASPs must submit suspicious transaction reports (STRs) immediately to the FIU via the designated platform. The FIU will also enhance data sharing with international FIUs, strengthening global cooperation against cross-border money laundering.
To protect those who report, the law adds strict confidentiality safeguards. Whistleblowers and reporting entities are shielded from liability when acting in good faith.
Customer Due Diligence and Preventive Measures
The decree requires stronger Customer Due Diligence (CDD) steps.
Enhanced Customer Due Diligence (EDD) must be applied for high-risk customers, including those in virtual asset services, politically exposed persons, cross-border transactions, etc. Companies must also maintain transaction records and submit them upon request to regulators.
This section of the law aims to prevent money laundering at the earliest stage by making sure that every business knows its customers and the source of funds.
Sanctions, Penalties, and Enforcement
The 2025 law increases penalties for non-compliance and gives regulators greater enforcement authority.
Violations may lead to:
- Administrative penalties (Heavy fines)
- Suspension or cancellation of licenses
- Personal liability for Individual where applicable.
Businesses must step up now and take necessary actions to comply with the latest AML/CFT regulations. Our AML consultants in Dubai can help businesses in this regard.
How can Jitendra Chartered Accountants (JCA) help?
Federal Decree-Law No. (10) of 2025 represents a major step forward for the UAE’s fight against money laundering and terrorism financing.
For businesses, this is the time to act. JCA is here to help businesses strengthen internal controls, review compliance systems, and ensure every process meets the new law’s requirements. Let us be your AML compliance officers in the UAE for better compliance with AML regulations in the UAE.