In a move that has captured the attention of compliance officers and business owners across the UAE, the Securities and Commodities Authority (SCA) recently imposed AED 1.15 million in administrative fines on multiple companies for violations of anti-money laundering (AML) and counter-terrorism financing (CFT) laws.
The penalties include:
🔹 AED 650,000 for general regulatory breaches
🔹 AED 500,000 specifically for failures in AML/CFT compliance and unauthorized promotional practices
This announcement is more than a headline—it’s a clear warning to businesses, especially those operating in high-risk sectors, that non-compliance will not be tolerated.
If your company operates in any of the following sectors, you’re automatically classified as high-risk under UAE regulations:
✅ Real Estate & Brokerage Firms
✅ Precious Metals & Stones Dealers
✅ Auditing & Accounting Firms
✅ Legal Consultancy Offices
✅ Corporate Service Providers (CSPs)
✅ Virtual Asset Service Providers (VASPs)
These sectors have long been under regulatory scrutiny due to their vulnerability to illicit financial flows, and the recent enforcement only tightens the pressure.
Based on public statements by the SCA, the common compliance failures leading to these penalties include:
Lack of internal AML/CFT controls and risk assessments
Failure to report suspicious transactions
Inadequate customer due diligence (CDD) and beneficial ownership identification
Unauthorized financial promotions beyond licensed activity
Poor recordkeeping and staff training
The UAE has made AML/CFT compliance a national priority, especially after being added to the FATF grey list in 2022 (though progress has since been made). Regulatory bodies—including the Ministry of Economy, SCA, DFSA, and FSRA—are actively auditing companies, issuing penalties, and even revoking licenses for non-compliant businesses.
These fines are not isolated. In 2023 alone, the Ministry of Economy imposed AED 65.9 million in fines on 137 DNFBPs.
The message is clear: compliance is no longer a checkbox—it’s a survival strategy.
At AM Audit, we specialize in regulatory compliance, with a dedicated team focused on helping high-risk businesses build robust AML/CFT frameworks that meet UAE regulations and global best practices.
Our services include:
As regulators tighten the net, the cost of non-compliance is only increasing—both financially and reputationally.
Let the recent AED 1.15 million penalty serve as a reminder that ignoring AML/CFT responsibilities is a risk your business can no longer afford.
If your business operates in a high-risk sector and you’re unsure about your current level of compliance, let’s talk. Don’t wait until your company becomes the next headline.
