Federal Decree-Law No. (20) of 2018 On Anti-Money Laundering, Combating the Financing of Terrorism and Financing of Illegal Organizations
Federal Decree-Law No. (20) of 2018
The 2018 AML/CFT decree-law created the former UAE federal framework for money laundering, terrorist financing and financing of illegal organisations, including preventive duties, supervision, financial intelligence, investigation, confiscation and penalties. It was repealed by Federal Decree-Law No. (10) of 2025.
Overview
What this legislation covers
The 2018 AML/CFT decree-law created the former UAE federal framework for money laundering, terrorist financing and financing of illegal organisations, including preventive duties, supervision, financial intelligence, investigation, confiscation and penalties. It was repealed by Federal Decree-Law No. (10) of 2025.
Who or what it applies to
- Historically: financial institutions, DNFBPs, relevant non-profit organisations and other persons within the law's preventive framework.
- Persons committing money laundering, terrorist financing or financing of illegal organisations.
- Supervisory authorities, law-enforcement bodies, Financial Intelligence Unit and other competent authorities.
- Historic transactions and conduct occurring while the decree-law was in force may still require analysis under the law applicable at the relevant time.
Key points
Important points at a glance
Historic federal AML/CFT law issued on 23 September 2018.
UAE Legislation metadata records publication in Official Gazette No. 637 (Annex) on 30 September 2018 and effect from 30 October 2018.
Defined money laundering as a standalone crime and did not require conviction for the predicate offence to prove illicit-source proceeds.
Criminalised financing of terrorism and financing of illegal organisations.
Applied preventive obligations to financial institutions and designated non-financial businesses and professions.
Later amendments expanded/updated the framework, including treatment of virtual asset service providers and institutional governance.
Required customer due diligence, record keeping, suspicious transaction reporting and risk-based controls through the decree-law and its Executive Regulation.
Established/regulated the Financial Intelligence Unit and national AML/CFT coordination architecture.
Provided powers for freezing, seizure, confiscation, investigation and international cooperation.
Contained significant criminal and administrative consequences for violations.
Was amended by Federal Decree-Law No. (26) of 2021 and Federal Decree-Law No. (7) of 2024.
Cabinet Decision No. (10) of 2019, as amended, was its principal former Executive Regulation.
Federal Decree-Law No. (10) of 2025 expressly repealed this decree-law in Article 41.
The replacement 2025 law took effect on 14 October 2025 and introduced the current AML/CFT/proliferation-financing framework.
Cabinet Resolution No. (134) of 2025 replaced the former AML Executive Regulation.
Practical explanation
Understanding the law
Purpose and practical effect
The 2018 AML/CFT decree-law created the former UAE federal framework for money laundering, terrorist financing and financing of illegal organisations, including preventive duties, supervision, financial intelligence, investigation, confiscation and penalties. It was repealed by Federal Decree-Law No. (10) of 2025.
Who / what the law applies to
- Historically: financial institutions, DNFBPs, relevant non-profit organisations and other persons within the law's preventive framework.
- Persons committing money laundering, terrorist financing or financing of illegal organisations.
- Supervisory authorities, law-enforcement bodies, Financial Intelligence Unit and other competent authorities.
- Historic transactions and conduct occurring while the decree-law was in force may still require analysis under the law applicable at the relevant time.
Important definitions
- Money Laundering: the statutory acts involving criminal proceeds described in Article 2 of the former law.
- Predicate Offence: a felony or misdemeanour generating proceeds under the former statutory definition.
- Financial Institution / DNFBP: regulated persons subject to preventive AML/CFT duties.
- FIU: the Financial Intelligence Unit receiving and analysing suspicious transaction information.
- Illegal Organisation: an organisation whose establishment or activities were criminalised under applicable law.
Principal rights, duties and legal consequences
- Covered entities were required to apply AML/CFT controls and cooperate with competent authorities.
- Customers and counterparties could be subject to identification, verification and due-diligence measures required by law.
- Authorities could use freezing, seizure, investigation and confiscation powers subject to statutory procedures.
- Historic rights/liabilities must be assessed under the law in force when the relevant conduct occurred and the applicable transitional/repeal rules.
Practical procedure / compliance checklist
- For a historic 2018–2025 matter, identify the date of conduct and the version of the decree-law then in force.
- Use the former Executive Regulation and amendments applicable at that date.
- For present-day compliance, do not use this repealed law as the primary legal basis; use Federal Decree-Law No. (10) of 2025 and Cabinet Resolution No. (134) of 2025.
- Preserve historic AML records where current retention or enforcement rules still require them.
- Verify whether transitional provisions or preserved prior resolutions affect an ongoing case.
Important dates and deadlines
- Former law effective date recorded by UAE Legislation: 30 October 2018.
- Repealed/superseded when Federal Decree-Law No. (10) of 2025 became effective on 14 October 2025.
- Historic record-retention, reporting and enforcement periods depend on the version applicable to the relevant date.
- Current AML reporting/compliance deadlines arise under the 2025 replacement framework.
Enforcement and legal exposure
This package is marked repealed. During its period of operation the decree-law supported criminal prosecution, confiscation, supervisory enforcement and administrative penalties. Current AML/CFT enforcement must be analysed under Federal Decree-Law No. (10) of 2025 and its Executive Regulation, while historic conduct may still require application of the earlier law under general criminal-law temporal rules.
Practical scenarios
- A suspicious transaction occurring in 2024 may require analysis under the 2018 law as amended at that time.
- A financial institution designing its 2026 AML programme should use the 2025 replacement law, not this repealed law.
- A historic confiscation or criminal case may require comparing the temporal effect of old and new penal provisions.
- Policies that still cite Cabinet Decision No. (10) of 2019 should be updated to the current 2025 Executive Regulation.
Amendments and current-law interaction
Former law amended by Federal Decree-Law No. (26) of 2021 and Federal Decree-Law No. (7) of 2024; repealed by Federal Decree-Law No. (10) of 2025. The current Executive Regulation is Cabinet Resolution No. (134) of 2025.
Research and publication caution
UAE federal legislation frequently operates together with Executive Regulations, Cabinet resolutions, ministerial decisions, local competent-authority rules and later amendments. This explanation is intended as detailed practical guidance for research and website publication, not as a substitute for the official Arabic text or case-specific legal advice.
Research status
Current-law verification for this package was performed on 2026-09-07.
Practical notes
- Use the official current Arabic text for interpretation and application; the English package is a structured legal-information rendering.
- Verify the current consolidated version and related regulations immediately before a filing, transaction, enforcement decision or court submission.
- Exact penalties, thresholds, exceptions and procedural deadlines must be checked against the exact current article and implementing instrument.
- The supplied cover artwork is editorial artwork and is not a source of legal authority or evidence of government endorsement.
Legislation text
Text and provisions
Official-text notice. This file is a comprehensive structured English legal-information rendering based on the UAE sources listed in this package. It is not represented as the legally controlling verbatim English text. For interpretation and application, consult the original Arabic legislation, the Official Gazette and the latest consolidated official version. Exact offence elements, penalties, thresholds, exceptions and procedural periods must be checked against the current article and implementing instrument.
Federal Decree-Law No. (20) of 2018 On Anti-Money Laundering, Combating the Financing of Terrorism and Financing of Illegal Organizations
Verified legislative metadata
| Instrument | Federal Decree-Law No. (20) of 2018 |
|---|---|
| Issued | 2018-09-23 |
| Effective | 2018-10-30 |
| Status | Repealed from 14 October 2025; superseded by Federal Decree-Law No. (10) of 2025 |
| Official source | UAE legislation source |
Legislative purpose and scope
The 2018 AML/CFT decree-law created the former UAE federal framework for money laundering, terrorist financing and financing of illegal organisations, including preventive duties, supervision, financial intelligence, investigation, confiscation and penalties. It was repealed by Federal Decree-Law No. (10) of 2025.
Structured legislative map
Definitions and predicate offences
Defined core AML/CFT concepts, proceeds, predicate offence, financial institutions, DNFBPs, supervisory and law-enforcement authorities.
Money laundering offence
Article 2 criminalised transfer, concealment, acquisition/use of criminal proceeds and assistance to evade punishment where the statutory knowledge/intent elements were satisfied.
Terrorist financing and illegal-organisation financing
Created separate offences and linked them to the terrorism-law framework.
Preventive measures
Required risk-based controls, customer due diligence, beneficial-owner understanding, monitoring and other preventive measures through the decree-law and Executive Regulation.
Suspicious transaction reporting
Required covered entities to report suspicious transactions/activities to the FIU under the statutory framework.
Record keeping and confidentiality
Required retention of prescribed records and regulated confidentiality/tipping-off concerns.
Financial Intelligence Unit
Established or regulated the FIU's receipt, analysis and dissemination functions.
National coordination
Established the National AML/CFT coordinating structure and allocated roles to supervisory and relevant authorities.
Supervision and inspections
Authorised supervisory authorities to inspect and enforce compliance by covered sectors.
Freezing, seizure and confiscation
Provided mechanisms for restraining and confiscating proceeds and related property, including court/prosecution measures.
International cooperation
Enabled exchange, assistance and cooperation with foreign counterparts within legal controls.
Penalties
Provided criminal penalties for laundering/financing offences and sanctions for breaches by regulated persons.
2021 and 2024 amendments
Updated definitions, governance and scope, including later virtual-asset and institutional elements.
Repeal in 2025
Article 41 of Federal Decree-Law No. (10) of 2025 expressly repealed the 2018 law and preserved non-conflicting implementing instruments only until replaced.
Key statutory points
- Historic federal AML/CFT law issued on 23 September 2018.
- UAE Legislation metadata records publication in Official Gazette No. 637 (Annex) on 30 September 2018 and effect from 30 October 2018.
- Defined money laundering as a standalone crime and did not require conviction for the predicate offence to prove illicit-source proceeds.
- Criminalised financing of terrorism and financing of illegal organisations.
- Applied preventive obligations to financial institutions and designated non-financial businesses and professions.
- Later amendments expanded/updated the framework, including treatment of virtual asset service providers and institutional governance.
- Required customer due diligence, record keeping, suspicious transaction reporting and risk-based controls through the decree-law and its Executive Regulation.
- Established/regulated the Financial Intelligence Unit and national AML/CFT coordination architecture.
- Provided powers for freezing, seizure, confiscation, investigation and international cooperation.
- Contained significant criminal and administrative consequences for violations.
- Was amended by Federal Decree-Law No. (26) of 2021 and Federal Decree-Law No. (7) of 2024.
- Cabinet Decision No. (10) of 2019, as amended, was its principal former Executive Regulation.
- Federal Decree-Law No. (10) of 2025 expressly repealed this decree-law in Article 41.
- The replacement 2025 law took effect on 14 October 2025 and introduced the current AML/CFT/proliferation-financing framework.
- Cabinet Resolution No. (134) of 2025 replaced the former AML Executive Regulation.
Amendments, implementing instruments and interaction with other legislation
Former law amended by Federal Decree-Law No. (26) of 2021 and Federal Decree-Law No. (7) of 2024; repealed by Federal Decree-Law No. (10) of 2025. The current Executive Regulation is Cabinet Resolution No. (134) of 2025.
Case-specific reading rule
This legislative map is designed for website publication and legal research. It gives a complete substantive overview of the statute's operative areas without pretending that a paraphrase can replace the controlling Arabic wording. Where the outcome depends on a defined term, penalty, exception, jurisdictional condition, transitional rule or procedural deadline, the current official article must be opened and applied directly.
Verification
Official source & references
Official legislation sourcehttps://uaelegislation.gov.ae/en/legislations/1016/archivedOpen ↗Official Gazette: Official Gazette No. 637 (Annex), published 30 September 2018
This page is a research and educational resource. Legislation can be amended, repealed, supplemented by regulations or interpreted by courts and authorities. Obtain advice before relying on it for a live matter.