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Doing business in the UAE has never been more profitable. The nation, once criticised for financial irregularities, has become a model of compliance – the gold standard for business transparency and combating financial crime.
But here’s the thing that every business owner should know: regulators don’t treat all industries the same. Certain industries inherently pose higher risks for terrorist financing, money laundering, and other financial crimes. If you’re in one of those high-risk industries, compliance isn’t optional – it’s crucial to the survival of your business.
Since January 2025, the UAE Central Bank has imposed a staggering AED 370.3 million ($101 million) in fines across various sectors. That’s not just a number on paper – it represents businesses that failed to meet compliance requirements and paid the price.
The message could not be more explicit: the UAE is serious about compliance, and businesses in high-risk industries need to comply or suffer devastating consequences.
The UAE’s regulatory shift is one of the most dramatic changes in the business environment. In June 2025, it finally emerged from both the FATF Grey List and the EU High-Risk AML List. It wasn’t merely a bureaucratic success, it was the culmination of sweeping reforms in every arena of the economy.
What does that mean to you? If you’re working in a high-risk industry, you’re under the microscope. Regulators are showing their enforcement muscle, and the penalties for non-compliance are draconian enough to close down businesses for good.
But there’s also a huge opportunity here. The UAE’s increased international reputation opens doors to international markets, international alliances, and greater business opportunities – but only for businesses that show strong compliance practices.
Let me take you through the ten business activities that require the greatest regulatory focus in the UAE. For each industry, I will describe exactly what compliance entails in real-world terms.
If you’re in the cryptosphere, you’re in the most highly regulated industry in the UAE. The silver lining? The UAE is now one of the world’s most crypto-friendly regions. The catch? The compliance conditions are far-reaching and seriously enforced.
Knowing which regulator is in charge of your actions matters:
Licensing requirements: All Virtual Asset Service Providers (VASPs) are required to acquire proper licensing prior to operations. The process of licensing includes registering a company in the desired jurisdiction, drafting extensive compliance documentation, and putting in place adequate security features.
Financial requirements:
Operational compliance:
Penalties for Non-Compliance: The penalties are strict. AML infractions by VARA-licensed persons can invoke fines between AED 100,000 and AED 5 million, along with potential imprisonment for those in charge. Marketing infractions can invoke fines of up to AED 10 million.
If you operate a crypto exchange, offer custody services, or engage in virtual assets, compliance needs to be at the centre of your operations. Begin by selecting the appropriate jurisdiction that aligns with your business model and market objectives. Establish robust AML/KYC systems prior to launch and ensure you have clear records, as these are typically scrutinized by regulators. Lastly, remain vigilant rules in this arena change rapidly, and proactive measures will keep your company on the right side of legislation.
The property market in the UAE is thriving. Virtual asset-related real estate transactions need to be routed through a licensed virtual asset service provider under the UAE Central Bank AML & CFT Regulations 2024. The sector’s mix of high-value transactions and legacy cash-intensive business renders it a high-priority area for increased AML regulation. The Principal Compliance Obligations are:
Customer due diligence:
Record keeping: Real estate agents and brokers are to keep their records and transaction information for a minimum period of five years. This encompasses detailed records of all transactions, customers, and correspondence.
Registration requirements: Real estate agents must register with the Financial Information Unit through the goAML portal.
Transaction monitoring: Real estate professionals need to have transaction monitoring and report any suspicious transactions to appropriate authorities.
Digital transformation requirements
The industry is adopting technology-facilitated transparency:
If you’re in real estate development, brokerage, or investment, compliance goes beyond closing deals. You’ll need to implement strong KYC checks, verify the source of client funds, and keep transaction records for at least five years. Make sure you’re registered with the Financial Information Unit through the goAML portal and train your team to spot red flags or suspicious activity. This protects both your business and your clients.
Money service businesses continue to be the subject of the most stringent regulatory oversight. The Central Bank enforcement efforts in 2025 feature record fines that reflect the severe penalties of poor compliance.
Key compliance requirements
Transaction monitoring:
Customer identification:
Operational requirements:
Reporting obligations:
If you’re in the money exchange or remittance business, compliance needs to be built into every step. Invest in real-time monitoring systems, train your staff regularly, and keep thorough transaction records ready for audits. Build strong relationships with regulators and ensure you have multiple layers of compliance controls, these steps not only meet legal requirements but also strengthen trust in your services.
Traditional banking is confronted with unprecedented compliance issues as regulators push for improved standards across every aspect of operations. Recent enforcement measures indicate severe penalties for non-compliance. The Improved Compliance Framework:
Basel III implementation:
Market conduct standards:
Operational requirements:
Governance standards:
If you’re running a bank or financial institution, regulators expect more than just standard compliance. Strengthen governance with clear accountability and invest in advanced monitoring tools to track transactions effectively. Put in place detailed incident response policies, develop solid ESG reporting frameworks, and maintain robust capital levels to meet evolving requirements. These steps will not only ensure compliance but also enhance resilience and stakeholder confidence.
The insurance industry has changing compliance needs, specifically new compulsory health insurance conditions and more stringent consumer protection conditions. Key compliance requirements are:
Consumer protection:
Digital product regulations:
ESG integration:
Operational requirements:
If you’re in the insurance sector, compliance means going beyond policies and premiums. Strengthen customer protection frameworks, build robust digital compliance systems, and integrate ESG factors into your underwriting. Enhance anti-fraud detection to safeguard operations and maintain strong capital positions to ensure solvency. Together, these measures help establish trust, foster stability, and promote long-term growth.
Dubai’s status as a global precious metals hub entails increased compliance obligations, particularly in light of the industry’s susceptibility to trade-based money laundering. The strengthened compliance requirements are:
Supply chain verification:
Customer due diligence:
Specialised compliance:
Operational requirements:
If you’re in the business of trading precious metals or jewellery, compliance and transparency are key. Put reliable supply chain tracking in place, verify customers thoroughly, and maintain detailed inventory and transaction records. Ensure adherence to global standards like the Kimberley Process, and back it all with strong security and storage systems. These steps not only meet regulations but also build trust in a sensitive, high-value market.
Global trade activities are subjected to sophisticated compliance needs across customs, sanctions, and export controls. The global presence of these businesses calls for coordination across several regulatory systems. The major compliance areas are:
Customs compliance:
Export controls:
Sanctions compliance:
Supply chain security:
If you’re engaged in international trade, compliance can give you both protection and an edge. Secure AEO certification to benefit from smoother customs processes and use automated systems to screen for sanctions. Put strong export control procedures in place, keep detailed supply chain records, and run regular audits to ensure compliance. These measures not only reduce risk but also build credibility with global partners.
Although gaming operations are still restricted in the UAE, current activities are subject to strict regulatory oversight with improved AML mandates and customer protection strategies. The compliance framework:
Licensing requirements:
AML compliance:
Player protection:
Operational controls:
If you’re running gaming operations, compliance is non-negotiable. Make sure your licenses are always up to date, apply strict AML controls, and put strong player protection measures in place. Back this with solid internal controls, regular audits, and detailed operational records. These steps not only keep you compliant but also build trust and credibility in a highly regulated industry.
The art market’s opacity and high-value transactions make it susceptible to money laundering, requiring enhanced due diligence measures and comprehensive documentation. Enhanced requirements:
Provenance documentation:
Customer due diligence:
Cultural property compliance:
International cooperation:
If you’re in the art and antiquities trade, transparency and diligence are essential. Maintain detailed provenance records for every piece and apply strict customer due diligence. Stay mindful of cultural property protection requirements, participate in international cooperation efforts, and adopt digital certification tools to strengthen authenticity and trust. These practices not only meet regulatory standards but also safeguard cultural heritage.
The UAE’s 45+ free zones have high business benefits but are accompanied by more stringent compliance requirements, specifically regarding Economic Substance Regulations (ESR) and beneficial ownership transparency. Increased oversight requirements:
Economic substance regulations:
Beneficial ownership transparency:
Operational compliance:
Penalties and enforcement:
| Violation Type | Penalty Range | Enforcement Focus |
|---|---|---|
| ESR Non-compliance | AED 20,000 – 400,000* | Increased audit frequency |
| Beneficial ownership failures | Significant penalties | Enhanced scrutiny |
| AML/CFT violations | Up to AED 200 million | Coordinated enforcement |
If you are working in a Free Zone, compliance involves reconciling federal and local requirements. Make sure you have economic substance, keep proper beneficial ownership information, and ensure your operations meet Free Zone as well as federal law. Submit ESR returns on time and get used to regular compliance audits. Keeping ahead on these fronts protects your license and business continuity.
The UAE’s emergence as a world compliance leader is opportunity and threat in equal measure. Disregard for regulation in high-risk areas can be expensive, with regulators already levelling huge fines. But a compliant program is more than a protection it’s a growth driver. By spending on technology, specialized staff, and strong processes, and by cooperating with regulators, firms can shield their business, boost their reputation, and achieve competitive advantage.
The journey calls for dedication and investment, yet those who adopt compliance with a strategic mindset will flourish in the UAE’s dynamic economy.
