Understanding the Law

However, in 2002, the UAE issued the first special penal legislation criminalizing money laundering in accordance with the provisions of the international agreements and recommendations (Federal Law No. (4) of 2002). This legislation was amended in 2014 and its executive regulation was issued to comply with the amendments that occurred in the recommendations of the FATF.

As part of the country’s preparations for the second round of the mutual evaluation process of the member countries of the Middle East and North Africa Financial Action Task Force (MENAFATF) in 2018, Federal Decree Law No. (20) of 2018 was issued on anti-money laundering, combating the financing of terrorism and financing of illegal organizations, which repealed Federal Law No. (4) of 2002. Its Executive Regulation was also issued pursuant to Cabinet Resolution No. (10) of 2019.

For the purposes of continuously updating the AML/CFT legislative framework in line with international recommendations, operational challenges, and rapid developments in the field of combating financial crime, Federal Decree Law No. (26) of 2021 was issued amending some provisions of Federal Decree Law No. (20) of 2018, and a Cabinet Decision No. (24) of 2022 was also issued amending some provisions of Cabinet Decision No. (10) of 2019 regarding the Executive Regulations.

Federal Decree-Law No. (7) of 2024 was also adopted, which amended – added some articles of Federal Decree-Law No. (20) of 2018. The new Decree-Law includes modifications that established the National Committee to Combat Money Laundering, Financing of Terrorism, and the Financing of Illegal Organisations, and the Cabinet will make a decision on its formation. The modifications also included the formation of a committee known as the " The Higher Committee Overseeing the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism," with the Cabinet issuing a decision on its formation and work structure.