(AML-CFT Law Articles 9.1, 15, 24, 25, 27; AML-CFT Decision Articles 16-18, 20.2, 21.2, 40-43)

The requirement to submit Suspicious Transaction Reports (“STRs”) to the Financial Intelligence Unit ("FIU”) is outlined in the (i) Federal Decree-Law No. (20) of 2018 on Anti-Money Laundering (“AML”) and Combatting the Financing of Terrorism (“CFT”) and Financing Illegal Organisations and Federal Decree law No. (26) of 2021 To amend certain provisions of Federal Decree-law No. (20) of 2018, on anti-money laundering and combating the financing of terrorism and financing of illegal organisations (the “AML-CFT Law”); (ii) Cabinet Decision No. (10) of 2019 Concerning the Implementing Regulation for Decree-Law No. (20) of 2018 on AML and CFT and Financing of Illegal Organisations (the “AML-CFT Decision”); and (iii) Cabinet Decision No. (74) of 2020 Regarding Terrorism Lists Regulation and Implementation of UN Security Council Resolutions on the Suppression and Combating of Terrorism, Terrorist Financing, Countering the Proliferation of Weapons of Mass Destruction and its Financing and Relevant Resolution.

Under the UAE AML-CFT legal and regulatory framework, all LFIs are obliged to promptly report to the FIU suspicious transactions and any additional information when there are suspicions, or reasonable grounds to suspect, that the proceeds are related to a crime, or to the attempt or intention to use funds or proceeds for the purpose of committing, concealing, or benefitting from a crime. “Crime” is defined in Article 1 of the AML-CFT Law as “money laundering crime and related predicate offences, or financing of terrorism or illegal organisations.” There is no minimum reporting threshold; all suspicious transactions, including attempted transactions, should be reported regardless of the amount of the transaction. LFIs are also required to put in place and update indicators that can be used to identify possible suspicious transactions.

Although the AML-CFT Law uses the term “STRs” to mean both suspicious transactions and activity, for the purposes of this Guidance document, suspicious activity involving transactions should be reported (in the first instance) to the FIU as STRs; suspicious activity that does not involve transactions, on the other hand, should be reported (in the first instance) to the FIU as Suspicious Activity Reports (“SARs”). Examples of scenarios that warrant a SAR filing include, but are not limited to: the customer is the subject of material adverse media; the customer alerts as a positive sanctions match; the prospective customer acts in a manner that is suspicious upon account opening (e.g., refusing to answer account opening questions; providing falsified or counterfeit documentation; exhibiting reluctance to provide detailed information about a business account, etc.); or the customer exhibits other suspicious behavior (e.g., inquiring about ways to circumvent certain reporting thresholds). STRs, SARs, and other report types (referenced in greater detail in Section 3.2 (“Basic Structure of an STR or SAR”)) align with the FIU’s current reporting regime and utilization of the goAML system.

Under federal law and regulations, whether the LFIs operate in the mainland UAE or in a Financial or Commercial Free Zone, the designated competent authority for receiving report of suspicious transactions or activity is the FIU. The UAE’s minimum statutory obligations that apply to LFIs are covered in the following requirements: