Cabinet Decision No. 10 of 2019 – Key Takeaways

Introduction

The UAE has taken bold steps to combat money laundering (ML) and terrorism financing (TF), aligning its regulatory framework with global standards set by the Financial Action Task Force (FATF). A cornerstone of this framework is Cabinet Decision No. 10 of 2019, which provides the Implementing Regulations for Federal Decree-Law No. 20 of 2018 (AML-CFT Law).

This decision expands obligations beyond banks, covering Designated Non-Financial Businesses and Professions (DNFBPs), and strengthens compliance requirements across sectors.

________________________________________

Purpose of Cabinet Decision No. 10 of 2019

The decision clarifies and enforces the provisions of the 2018 AML law by:

• Defining obligations of financial institutions and DNFBPs.

• Establishing customer due diligence standards.

• Setting requirements for reporting and record-keeping.

• Strengthening the supervisory and enforcement framework.

________________________________________

Key Takeaways

1. Expanded Scope of AML Obligations

The decision explicitly applies to:

• Financial Institutions (FIs): Banks, money exchange houses, insurance companies, etc.

• DNFBPs:

o Real estate brokers and developers.

o Dealers in precious metals and stones (DPMS).

o Auditors and accountants.

o Corporate service providers.

o Lawyers, notaries, and other professionals handling financial transactions.

2. Customer Due Diligence (CDD) Requirements

• Businesses must verify customer identity before establishing a business relationship.

• Enhanced Due Diligence (EDD) is required for high-risk clients, such as politically exposed persons (PEPs).

• Continuous monitoring of transactions is mandatory.

• Identification of Ultimate Beneficial Owners (UBOs) is required to ensure transparency.

3. Suspicious Transaction Reporting (STRs)

• Both FIs and DNFBPs must file STRs with the Financial Intelligence Unit (FIU) via the goAML platform.

• Reports should be filed promptly upon detecting suspicious or unusual activity.

4. Cash Transaction Reporting (CTRs)

• Mandatory reporting of all cash transactions above AED 55,000.

• Aimed at reducing risks in cash-intensive sectors like real estate and gold trading.

5. Record-Keeping Obligations

• All customer data, transaction details, and due diligence documents must be retained for at least five years.

• Records should be easily accessible for regulatory inspections.

6. Risk-Based Approach (RBA)

• Entities must adopt a risk-based approach to AML compliance.

• Risks must be assessed by customer type, geographic location, transaction nature, and service offered.

7. Role of Supervisory Authorities

The decision grants regulatory powers to multiple authorities, including:

• Ministry of Economy (MoE) – Supervises DNFBPs.

• Central Bank of the UAE (CBUAE) – Supervises financial institutions.

• Securities and Commodities Authority (SCA) – Oversees securities firms.

• Free zone authorities such as DFSA (DIFC) and FSRA (ADGM).

8. Penalties for Non-Compliance

• Fines ranging from AED 50,000 to AED 5 million.

• License suspension or cancellation for repeated violations.

• Possible criminal liability for willful breaches.

________________________________________

Impact on UAE Businesses

• DNFBPs such as real estate firms, jewellers, auditors, and corporate service providers are now directly accountable for AML compliance.

• Businesses must implement robust AML frameworks, including:

o Appointing a Compliance Officer/MLRO.

o Conducting regular employee training.

o Establishing internal AML policies and risk assessments.

• Non-compliance can result in hefty fines, reputational damage, and operational restrictions.

________________________________________

Conclusion

Cabinet Decision No. 10 of 2019 is a landmark regulation that extended AML compliance responsibilities beyond banks to cover a wide range of businesses in the UAE. By focusing on customer due diligence, reporting obligations, and risk-based monitoring, it ensures a comprehensive defense against money laundering and terrorism financing.

For businesses, compliance is not only a legal requirement but also a strategic necessity to build trust with regulators, investors, and global partners.

________________________________________

About Sheikh Anwar Accounting and Auditing LLC

At Sheikh Anwar Accounting and Auditing LLC, we help financial institutions and DNFBPs comply with Cabinet Decision No. 10 of 2019. Our services include:

• AML risk assessments and policy drafting.

• goAML registration and reporting support.

• UBO compliance and record-keeping assistance.

• Outsourced MLRO and compliance officer services.

• Employee training tailored for AML obligations.

• 📍 Head Office: Dubai, UAE

• 🌐 Website: www.sa-auditors.com

• 📧 Email: info@sa-auditors.com