In a significant move that underscores the UAE’s commitment to financial integrity, the Securities and Commodities Authority (SCA) has levied AED 1.15 million in administrative fines against several companies for breaches of anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
Breakdown of Penalties
The fines include:
AED 650,000 for general regulatory breaches
AED 500,000 for AML/CFT compliance failures and unauthorized promotional practices
This announcement serves as a clear warning to all businesses, particularly those in high-risk sectors, that regulatory compliance is non-negotiable.
High-Risk Sectors: Who Should Take Notice?
Under UAE law, the following sectors are considered high-risk and subject to enhanced regulatory scrutiny:
Real Estate & Brokerage Firms
Precious Metals & Stones Dealers
Auditing & Accounting Firms
Legal Consultancy Offices
Corporate Service Providers (CSPs)
Virtual Asset Service Providers (VASPs)
These industries are particularly vulnerable to illicit financial flows, making rigorous compliance essential.
Common Violations Highlighted by the SCA
According to the SCA’s public statements, the most prevalent compliance failures include:
Inadequate internal AML/CFT controls and risk assessments
Failure to report suspicious transactions
Weak customer due diligence (CDD) and insufficient identification of beneficial ownership
Conducting unauthorized financial promotions
Poor recordkeeping and insufficient staff training
Why This Matters
Since being placed on the FATF grey list in 2022, the UAE has prioritized AML/CFT compliance across all sectors. Government entities—including the Ministry of Economy, SCA, Dubai Financial Services Authority (DFSA), and the Financial Services Regulatory Authority (FSRA)—have increased audits, enforcement actions, and license revocations.
These recent penalties are part of a broader regulatory trend. In 2023, the Ministry of Economy issued fines totaling AED 65.9 million to 137 designated non-financial businesses and professions (DNFBPs).
Compliance as a Strategic Imperative
Compliance is no longer a formality—it is fundamental to business sustainability in the UAE.
Why Leading Firms Choose AM Audit
AM Audit provides bespoke AML/CFT compliance solutions tailored to the specific needs of UAE-based companies operating in high-risk sectors. We offer:
Comprehensive AML/CFT Risk Assessments
Policy and Procedure Development & Review
Compliance Officer Advisory and Outsourcing
CDD/KYC Framework Implementation and Monitoring
Regulatory Filing Support and Audit Readiness
Our goal is to help you stay ahead of enforcement, not simply respond to it.
Time to Act
If your AML/CFT framework hasn’t been reviewed in the past 12 months—or if you’re uncertain about the adequacy of your controls under SCA, Ministry of Economy, or Central Bank standards—it’s time to reassess.
AM Audit is a trusted partner for firms across the UAE, delivering timely, tailored, and strategic compliance solutions that mitigate risk and safeguard reputations.
