What is terrorist financing?
Article 3 of the Federal Decree-Law No. 10 of 2025 (Anti-Money Laundering) says whoever intentionally provides, collects or makes available funds by any means, directly or indirectly, including through digital systems, virtual assets or cryptographic technologies, knowing that they will be used in whole or in part to commit a terrorist act, by a terrorist or terrorist organisation, or to finance travel for a terrorist act or training, commits financing of terrorism.
The funds can come from a legitimate or illegitimate source, and the crime is committed whether or not the funds were actually used or linked to a specific act, and wherever the accused is located.
What is proliferation financing?
Providing or collecting funds, directly or indirectly, knowing they will be used for the manufacture, possession, acquisition, development, production, sale, supply, export, brokerage, transport or use of weapons of mass destruction, their means of delivery or related materials, including dual-use goods, except where permitted by law or treaty (Article 3(3)).
Knowledge may be inferred from the factual and objective circumstances (Article 3(4)).
What are the penalties?
Financing terrorism is punished by life imprisonment or temporary imprisonment of not less than ten years and a fine of AED 1,000,000 to AED 10,000,000, or twice the value of the property if greater. Proliferation financing is punished by temporary imprisonment and the same fine (Article 26(3) and (4)). An attempt carries the same penalty (Article 26(5)).
A legal person is fined AED 5,000,000 to AED 100,000,000 and, on conviction, the court shall order its dissolution and closure of its premises (Article 27(1) and (3)).
What practical risks do businesses and individuals face?
Moving money for someone you do not know well, lending accounts, or ignoring red flags in donations and payments. The knowledge element can be inferred from circumstances, so records of due diligence are important.
If you are contacted by authorities, do not warn others, do not move funds and take advice at once.
What should I do first?
Do not discuss the matter with others
Tipping off is an offence.
Freeze your own transfers
Do not move funds in or out.
Collect your due diligence records
KYC, contracts and approvals.
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Frequently asked questions
Does it matter if the funds were legitimate?
No. Funds from a legitimate source can still be used in financing of terrorism (Article 3(2)).
Does it apply to cryptocurrencies?
Yes. The article covers digital systems, virtual assets and cryptographic technologies (Article 3(1)).
Can a company be dissolved?
Yes. The court shall order dissolution on a conviction for financing terrorism or proliferation (Article 27(3)).
Is attempt punished?
Yes, with the same penalty as the completed crime (Article 26(5)).
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Read the guideSources
Source: Federal Decree-Law No. 10 of 2025 (Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation Financing), official English text on the UAE Legislation portal, checked 9 October 2026. The portal lists the law as active, in force from 14 October 2025. The Arabic text prevails over translations.
This page is general information, not legal advice.