Anti-Money Laundering (AML)
~55 min read
Lesson
UAE AML framework
Money laundering threatens the integrity of capital markets. The UAE enforces a strict AML regime led by Federal Law No. 20 of 2018, with reports flowing to the Financial Intelligence Unit (FIU).
Federal Law No. 20 of 2018
Definition · The UAE federal law on Anti-Money Laundering and Counter-Terrorism Financing.
Explanation
It defines the offence, sets customer due diligence (CDD) rules, requires firms to monitor and report suspicious transactions, and creates penalties.
Why it matters
Every AML exam question references this law.
Real-world example
A broker that fails to file a Suspicious Transaction Report can be penalized under Law 20/2018.
Key exam points
- ●Wire transfers ≥ AED 3,500 require full originator/beneficiary data
- ●Suspicious Transaction Reports (STR) filed to the FIU
- ●Records kept for 5 years minimum
Common mistakes
- ●Filing STRs to the SCA instead of the FIU
Customer Due Diligence (CDD) & STR
Definition · Know-your-customer checks and the duty to report suspicion.
Explanation
Firms identify and verify customers, screen against sanctions lists, monitor transactions and file an STR as soon as suspicion arises — without tipping off the customer.
Why it matters
STR and the tipping-off offence are heavily tested.
Real-world example
If a customer suddenly sends AED 4,000 wires to several unknown counterparties, the compliance team files an STR with the FIU.
Key exam points
- ●Tipping off the customer is a CRIMINAL offence
- ●STR is filed to the FIU, not the SCA
- ●Records retained for 5 years
Common mistakes
- ●Thinking you must inform the customer first — you must NOT
Reporting
STRs go to the FIU. Tipping off the customer is a criminal offence.
Exam Tip
Wire transfer threshold for full data: AED 3,500.
Review & Memorize
Quick facts
Exam Numbers
Wire Transfer
AED 3,500
Records
5 Years
Law
20 of 2018
What You Must Remember
Top exam facts
- ●Federal Law No. 20 of 2018 governs UAE AML
- ●Wire transfer data threshold: AED 3,500
- ●STRs filed to the FIU (not the SCA)
- ●Records retained for 5 years
- ●Tipping off the client is a criminal offence
Key definitions
- ●CDD — Customer Due Diligence — KYC and ongoing monitoring
- ●STR — Suspicious Transaction Report — filed to the FIU
- ●FIU — Financial Intelligence Unit — receives STRs
Key numbers
- ●Wire Threshold: AED 3,500
- ●Retention: 5 Years
Likely exam questions
- ●Where are STRs filed?
- ●What is the wire transfer threshold?
- ●May you inform the client about an STR?
- ●Which law governs UAE AML?