When you walk into a bank, send money to family overseas, invest in property, or donate to a charity, you trust that your money is safe and that the financial system around you is secure. That trust isn’t accidental – it’s built on robust laws that protect honest citizens and legitimate businesses while keeping criminals out.
This month, the UAE took a major step in strengthening that protection with Federal Decree Law No 10 of 2025 on tackling money laundering, terrorist financing and proliferation financing.
For residents and businesses in the UAE, this law matters because it directly affects economic security, job stability and quality of life. Financial crime isn’t a victimless offence happening in distant boardrooms. It drives up costs for honest businesses, threatens jobs, distorts property prices and can damage the reputation of the very economy that provides opportunities for millions of people who call the UAE home.
The new law brings the UAE’s legal framework fully in line with the latest standards set by the Financial Action Task Force – or FATF – the international watchdog for financial crime. In June 2023, the UAE was rated compliant or largely compliant with 39 out of 40 FATF recommendations, among the highest scores globally. This new legislation builds on that success, translating international best practices into national law that reflects the unique character of our economy and society.
The UAE is home to global financial centres and one of the world’s most vibrant trade hubs. It’s a leading destination for foreign investment, with a dynamic real estate sector attracting capital from every part of the globe. It’s also a forward-looking economy that has embraced emerging industries like virtual assets, and a caring society that hosts national and international non-profits doing vital humanitarian work across the developing world.
These strengths make the UAE attractive to legitimate businesses, but they can also attract those seeking to exploit the system. That’s why robust financial crime laws aren’t just about compliance; they’re also about preserving the integrity that makes the UAE a desirable place to live, work and invest.
The new law directly addresses these unique features of our economy. As a global financial and trade hub, the UAE requires seamless national co-ordination across government agencies, regulators and law enforcement, which is why the law strengthens the General Secretariat’s role in embedding centralised co-ordination, leading on risk assessment and policy, and protecting the country’s reputation as a leading jurisdiction for fighting financial crime.
The law also enhances the powers of the Financial Intelligence Unit, enabling it to issue immediate freezing orders and exchange information with international counterparts under strict confidentiality. When authorities co-ordinate effectively and can act swiftly, financial criminals have nowhere to hide, and the system that processes millions of legitimate transactions daily remains secure.
With the UAE having positioned itself at the forefront of emerging technologies, the law introduces comprehensive obligations for virtual asset service providers, including registration, licensing and ongoing supervision. This protects consumers and investors from fraud while allowing legitimate innovation to flourish – ensuring that the UAE’s embrace of future industries doesn’t create vulnerabilities.
Similarly, the law strengthens transparency requirements for legal persons and arrangements, requiring accurate, up-to-date information on beneficial ownership to prevent shell companies from being used to hide dirty money. This protects honest businesses from being undercut by criminal competitors and ensures that when you invest in UAE property or do business here, you’re operating on a level playing field where prices reflect genuine market value, not inflated figures driven by illicit funds.
The law also recognises the important role of non-profit organisations in UAE society while providing balanced oversight to protect them from misuse. Proportionate supervision ensures that charitable donations reach their intended beneficiaries and that the UAE’s humanitarian sector can continue its vital work without being exploited by those with criminal intent.
Additionally, the law includes detailed provisions to deal with proliferation financing – setting strict controls to prevent the funding of weapons of mass destruction programmes, which contributes to regional and global security that directly affects the stability and prosperity of everyone living and working in the UAE.
The law’s enhanced asset recovery framework, which incorporates the FATF’s recent amendments and establishes a new entity to manage seized assets, ensures that criminal proceeds are confiscated effectively. When criminals lose their ill-gotten gains, crime becomes less profitable and society can benefit from recovered assets.
Finally, the law introduces stricter administrative and criminal sanctions across all sectors – financial institutions, businesses and virtual asset providers – creating strong deterrents that protect honest market participants from unfair competition.
For the average citizen, expat resident, or business owner, this law means greater confidence in the financial system you depend on daily. It means that when you invest in property, your purchase price isn’t inflated by dirty money. It means when you work for a company, it’s competing fairly rather than being undercut by criminal enterprises. It means when you send money home or receive payments, the system protecting those transactions is world-class.
The UAE’s economic success is built on trust – trust that the system is fair, transparent and secure. Federal Decree Law No 10 of 2025 reinforces that foundation, ensuring that the UAE remains a jurisdiction where legitimate opportunity thrives and financial crime finds no refuge. As we implement these reforms, the General Secretariat will work closely with national entities to ensure real impact.
Our commitment to financial integrity isn’t just about meeting international standards – it’s also about protecting the economic security and quality of life that makes the UAE home to millions and a destination of choice for businesses worldwide.
