In 2025, the Central Bank of the UAE (CBUAE) launched one of its most aggressive enforcement campaigns ever under its AML/CFT regime. Through large fines, license revocations, restrictions and personal sanctions, the message is clear: systemic KYC/AML and compliance management failures will no longer be tolerated.
Post EU and FATF Grey List Regulatory Scrutiny in the United Arab Emirates (UAE)
Following the UAE’s removal from the FATF “grey list” and the EU’s high-risk jurisdiction list in 2024—designations for countries under increased monitoring for AML/CTF deficiencies—both the CBUAE and the Ministry of Economy and Tourism have stepped up inspections and enforcement. The regulators aim to prove that their supervisory regime is both effective and dissuasive, reassuring global stakeholders and strengthening the UAE’s position as a trusted financial hub.
“The inspection campaigns represent a key pillar of our strategy to foster a transparent and well-governed business environment in the UAE. By implementing proactive monitoring mechanisms to counter money laundering and terrorism financing risks, we are reinforcing the UAE’s reputation as a secure, globally compliant economic hub that upholds the highest international standards.”
H.E. Safia Hashem Al-Safi, Assistant Undersecretary for Commercial Control and Governance at the Ministry of Economy and Tourism
Read A Guide to Financial Services Regulators and Compliance Regulations in the Middle East
Key CBUAE Enforcement Actions So Far in 2025
CBAUE enforcement activity so far in 2025 has made it clear the regulator has intensified inspections and is applying sanctions where AML/CFT and risk management standards are breached. Some key examples can be found below.
- A major exchange house received a record AED 200 million penalty for pervasive AML/CTF control failures including inadequate customer due diligence, weak transaction monitoring, and delayed reporting to the FIU. The branch manager was personally fined AED 500,000 and permanently banned from working in the UAE financial sector.
- Another exchange house faced AED 100 million in sanctions for repeat AML breaches, including failing to implement remediation plans from prior inspections.
- Two foreign bank branches operating in the UAE were collectively fined AED 18.1 million for insufficient risk-based monitoring, poor governance oversight, and gaps in suspicious activity reporting.
- A domestic UAE bank was fined AED 3 million and barred from onboarding new Islamic banking clients for six months after CBUAE inspectors found deficiencies in AML controls and Sharia governance.
- CBUAE revoked the licenses of three exchange houses for repeated AML/CTF violations and failure to remediate earlier supervisory findings.
These and other penalties bring the total of regulatory fines in 2025 (so far) into the hundreds of millions of dirhams.
Read About Smarter Ethics and Conduct Risk Management for UAE Banks and Financial Services Firms
Compliance Takeaways from Recent UAE Enforcement Actions
- UAE regulators will pair corporate penalties with personal accountability, placing compliance leaders directly in the crosshairs.
- Repeated non-compliance escalates penalties significantly and demonstrates that remediation follow-up is a critical regulatory expectation.
- Foreign institutions doing business in the region must adhere to local obligations and compliance frameworks must be localized and aligned to UAE requirements.
- Banks offering Islamic products must ensure compliance controls meet both UAE regulations and Sharia standards.
- License revocation represents the ultimate regulatory sanction—institutions with persistent non-compliance risk losing their ability to operate entirely.
Increased Regulatory Scrutiny Drives the Need for Compliance Technology in the UAE
The CBUAE’s campaign underscores a growing trend across the region: regulators are intensifying scrutiny and holding institutions—and individuals—accountable. For compliance leaders, this is a clear signal that reactive programs are no longer sufficient and that policies must be strictly enforced.
To mitigate risk and meet rising expectations, firms must adopt a proactive, integrated compliance strategy. This includes:
MCO Enables Firms to Meet the Regulatory Expectations of the CBUAE and Other Regulators Across the GCC
MCO’s single platform empowers financial institutions to manage AML/CFT compliance, personal accountability, fit and proper standards and more, all on a single system. With modular, scalable solutions that can be easily configured to meet regional requirements, MCO enables firms to demonstrate oversight, mitigate risk and meet regulatory obligations with confidence and efficiency.
Ready to see how MCO can help your financial services firm or bank effectively navigate complex regulations and compliance requirements across the Middle East?
