The UAE has introduced a series of measures to tackle money laundering, including closing regulatory gaps for law firms and setting up special courts for financial crimes. The National
The UAE has introduced a series of measures to tackle money laundering, including closing regulatory gaps for law firms and setting up special courts for financial crimes. The National
The UAE has introduced a series of measures to tackle money laundering, including closing regulatory gaps for law firms and setting up special courts for financial crimes. The National
The UAE has introduced a series of measures to tackle money laundering, including closing regulatory gaps for law firms and setting up special courts for financial crimes. The National

Government

UAE sets up special courts to tackle money laundering in four emirates

The decision follows Abu Dhabi's move this month to create a court and prosecution unit for financial crimes

The National

November 30, 2020

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Special courts to hear cases involving money laundering will be set up in four emirates, the Ministry of Justice said.

Sharjah, Ajman, Umm Al Quwain and Fujairah will each have a court for hearing minor, major and appeals cases.

Sultan Al Badi, Minister of Justice, announced the decision as part of efforts to "support the country's efforts and efficiency in combating crimes related to money laundering".

His decision, reported by state news agency Wam on Sunday night, follows a move by Abu Dhabi on November 10 to set up a court in the capital to handle money laundering and tax evasion.

Sheikh Mansour bin Zayed, Deputy Prime Minister, Minister of Presidential Affairs and Chairman of the Abu Dhabi Judicial Department, issued a resolution to set up the court and begin special training for judges and prosecutors.

Also on Sunday, Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Co-operation, led a meeting of the Higher Committee Overseeing the National Strategy on Anti-Money Laundering and Countering the Financing of Terrorism, which was held remotely.

He reviewed recent efforts by the committee, comprised of Cabinet ministers and department heads, to introduce anti-financial crime measures.

Ahmed Ali Al Sayegh, Minister of State, reflected on how this year the Cabinet issued Resolution No 74 for 2020.

That concerns the lists of terrorists and introduction of UN Security Council decisions relating to preventing and countering the financing of terrorism and non-proliferation of weapons of mass destruction.

Mr Al Badi said four guideline manuals pertaining to money laundering crimes were issued recently to various authorities.

He said 200 law firms in the UAE that had failed to comply with anti-money laundering procedures were suspended from practising for one month.

Their suspensions will be lifted once they fulfil their obligations.

Mr Al Badi also reflected on the recent action against seven law firms that were each fined Dh100,000 for breaching regulations.

Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Co-operation, leads a meeting of the ministers and officials on the country's anti-money laundering committee. Wam
Sheikh Abdullah bin Zayed, Minister of Foreign Affairs and International Co-operation, leads a meeting of the ministers and officials on the country's anti-money laundering committee. Wam
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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

UAE