UAE is an international business destination and so, the government and concerned authorities are strict in the financial sector. The issuance of violations and fines support UAE’s effort in combating financing or terrorism and money laundering. The Ministry of Economy has issued a list of violations and administrative fines to overcome this issue.
The violations connect to the business activities and DNFBPs ministry supervises which combat money laundering and terrorism financing according to the provisions of Federal Decree-Law no 20 of 2018.
The major business categories include,
The ministry called on such companies to enhance their awareness on risk of money laundering and stay aligned with the government’s efforts.
Grace Period for registration
As a first step, the ministry recommends businesses to register on the financial intelligent unit (goAML) and also, on the committee for commodities that handle export and import control system or (Automatic reporting system for sanctions list).
Following up these two registrations, the businesses should understand and meet all the provisions of its decree-law, regulations and decisions.
Now, the grace period for registering in these two systems has been extended till March 31st. Companies who fail to do so, will be subject to penalties including, closure of facility and suspension of license. The company should complete their post-registration procedures to avoid additional financial penalties.
The fines range from Dh 50,000 to Dh 1 million and it can be doubled up to Dh 5 million.
List of penalties and fine amount
The cabinet resolution included three penalties with a fine of Dh 1 million, they are
Again, the list included five penalties with a fine of 200,000 Dh for issues like
The list included seven violations with a fine of 100 thousand Dh
The list included eleven violations with a fine of Dh 50,000
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