Abu Dhabi court jails six money launderers and imposes fines of Dh160m

Abu Dhabi Criminal Court jailed six Pakistani citizens for money laundering.

The men were fined Dh10 million each. Two companies owned by one of the men were also fined Dh50m each.

Authorities accused the six of selling drugs and conducting suspicious banking transactions to conceal the origin of funds.

Investigators uncovered a complex web of trafficking controlled by the gang.

Gang members directed buyers to the drugs after money was deposited into bank accounts of the accused in the UAE or into the accounts of the two companies. The turnover of the two accounts reached about Dh8m ($2.17m) in six months, which was not compatible with the activities of the two companies.

These illicit funds were then transferred to Pakistan using money exchanges.

Close to Dh2m was found in one of the men's homes and investigators found that the men's bank accounts had recorded a significant turnover not consistent with the account holder's activities.

It was also revealed that at least 50 deposits were made to an account of one of the men with values between Dh500 and Dh1,000. The investigation found that eight of the people who deposited money had a history of drug addiction.

Investigators also proved one of the men had accounts with two other banks in the name of two companies he owned.

Abu Dhabi Judicial Department said the UAE has a special judicial structure to combat financial crimes, which clamped down on money-laundering operations and helped arrest those involved.

Abu Dhabi in November established a dedicated court to tackle money laundering and tax evasion.

Earlier this year, the Central Bank said the UAE had made significant progress with a plan to combat money laundering and interrupt terrorist finances.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Abu Dhabi court jails six money launderers and imposes fines of Dh160m

Turnover of two accounts held by drug-trafficking gang totalled about Dh8m in six months

Ten tax points to be aware of in 2026