The dirham is pegged to the US dollar, which the Central Bank of the UAE defends by buying and selling dirhams at 3.673 and 3.672, and keeping that peg is the central bank's main monetary objective. Banks and other financial institutions are licensed and supervised by the Central Bank under Federal Decree-Law No. 6 of 2025, and onboarding follows the anti-money laundering law in force since October 2025, so expect full look-through to beneficial owners at the 25% level and source-of-wealth questions for higher-risk customers. Profits can be paid to foreign shareholders without UAE withholding tax because the rate is 0%.
The dirham and the dollar peg
The Central Bank keeps a fixed exchange rate between the dirham and the US dollar, buying dirhams at 3.673 per dollar and selling at 3.672 with eligible counterparties. Maintaining the peg is the overriding objective of its monetary framework, and its policy rate (the Base Rate) is anchored to the US Federal Reserve's Interest on Reserve Balances rate, so UAE interest rates broadly follow US rates.
For a business this means dirham-dollar currency risk is low while the peg holds, and the main exchange exposure is between the dollar and other currencies. The Central Bank law gives the Central Bank power to set the exchange rate regime with Cabinet approval, so the peg is a policy choice rather than a statutory rate.1234
Who regulates banks and payment providers
Federal Decree-Law No. 6 of 2025 on the Central Bank, financial institutions and insurance took effect on 16 September 2025 and replaced the 2018 Central Bank law. No one may carry on a licensed financial activity, including currency exchange and money transfer, in or from the UAE without a Central Bank licence. A group that plans to collect payments or move money for customers should check early whether that activity needs a licence.
The Central Bank's AML/CFT Supervision Department supervises banks, exchange houses, finance companies and stored value facilities. Firms in the DIFC and ADGM financial free zones are supervised by their own regulators, so a bank or fintech there follows those rulebooks rather than the Central Bank's.5678
Account opening and due diligence
Banks must apply customer due diligence and ongoing monitoring, and cannot open anonymous or numbered accounts. Federal Decree-Law No. 10 of 2025, in force since 14 October 2025, replaced the 2018 anti-money laundering law. Under Central Bank guidance, a bank identifies and verifies every individual holding a controlling ownership interest of 25% or more in a corporate customer. Only where no such person exists does it fall back on the individual who exercises control. Verification normally happens before the account is opened.
Enhanced due diligence is mandatory for politically exposed persons with high-risk factors and for links to high-risk countries, and may include senior management approval and evidence of the source of funds and source of wealth of the customer and its beneficial owners. Preparing the beneficial owner register required by Cabinet Resolution No. 109 of 2023, with an ownership chart through every intermediate holding company, lets the same evidence serve the registrar and the bank. DIFC and ADGM entities keep beneficial ownership information under their own regimes, but banks apply equivalent look-through checks.91011121314
Repatriating profits and moving money
Dividends, interest, royalties and service fees paid to non-residents are subject to UAE withholding tax at 0%, so repatriation is not reduced by UAE tax at source. Banks will still ask for supporting documents, such as board resolutions approving dividends, as part of transaction monitoring. Every account has an IBAN, which has been mandatory for electronic payments into and out of the UAE since 2012.
Travellers carrying cash, cheques, payment orders, precious metals or stones worth more than AED 60,000 must declare them to customs. Foreign ownership of banks, exchange houses and finance companies is a strategic-impact activity requiring federal approval.15161718
| Topic | Rule | Authority or source |
|---|---|---|
| Exchange rate | Dirham pegged to the US dollar; CBUAE buys dirhams at 3.673 and sells at 3.672 | Central Bank of the UAE |
| Policy rate | Base Rate anchored to the US Federal Reserve's Interest on Reserve Balances | Central Bank of the UAE |
| Licensing | Licensed financial activities, including currency exchange and money transfer, need a Central Bank licence | Federal Decree-Law No. 6 of 2025, Articles 60-61 |
| AML law | Federal Decree-Law No. 10 of 2025, in force 14 October 2025 | Central Bank and other supervisors |
| Beneficial owners at onboarding | Identify and verify individuals with 25% or more | CBUAE customer due diligence guidance |
| Withholding tax on payments abroad | 0% | Corporate tax law |
| Cash declaration | Above AED 60,000 or equivalent, for passengers aged 18 or over | Customs |
How it works, step by step
- Complete the commercial licence and file the beneficial owner register, documenting ownership to natural persons.1319Licensing authority and registrar
- Submit the account application with corporate documents, identity documents for owners and signatories, and a description of expected transaction flows.1011Licensed bank
- Answer enhanced due diligence questions on source of funds and source of wealth where the bank identifies higher-risk factors.12Licensed bank
- Once the account is open, use its IBAN for all electronic payments and keep documents supporting dividend and intra-group payments.1615Licensed bank
No timings or fees are shown unless an official source states them.
Documents usually needed
- Commercial licence and constitutional documents
- Beneficial owner register and group ownership chart
- Passports and proof of address for shareholders, managers and signatories
- Board resolution authorising account opening and signatories
- Description of the business model, expected transaction flows and main counterparties
- Evidence of source of funds and source of wealth for beneficial owners where the bank requests it
Common mistakes
- Applying to banks before the beneficial ownership chain is documented to natural persons.
- Underestimating the information banks require on expected transaction volumes and counterparties.
- Assuming a free zone or DIFC/ADGM licence guarantees account approval.
- Collecting or transferring money for customers without checking whether the activity needs a Central Bank licence.
- Relying on bank forms or policies that still cite the repealed 2018 Central Bank or anti-money laundering laws without checking the current position.
When the business crosses borders
- With 0% withholding tax, the tax cost of repatriation sits in the recipient's jurisdiction.
- Foreign beneficial owners should expect the bank to verify source of funds and source of wealth, especially where they are politically exposed or linked to higher-risk countries.
- Because the dirham is pegged to the dollar, groups reporting in another currency should manage dollar exposure rather than dirham exposure.
- Executives carrying more than AED 60,000 in cash or equivalent instruments must declare it when travelling.
Questions businesses ask
Is there UAE tax when profits are paid to a foreign parent?
No UAE withholding tax arises in practice: the rate on UAE-sourced income paid to non-residents is 0%.15
What this guide does not yet confirm
These points need checking with a qualified local professional in the United Arab Emirates before you rely on them.
- No official UAE page found expressly states that there are no exchange controls or restrictions on repatriating capital; Central Bank pages describe the peg but are silent on exchange controls, so the point is not stated as a claim.
- The Central Bank customer due diligence guidance shown as in force still cites the repealed 2018 AML law; whether an updated version under Federal Decree-Law No. 10 of 2025 has been issued was not confirmed.
- Transitional provisions of Federal Decree-Law No. 6 of 2025 for institutions licensed under the 2018 law could not yet be checked.
- The federal legal basis for the AED 60,000 cash declaration threshold could not yet be checked; it is confirmed only from the Dubai Customs guide.
- Account opening timelines and minimum balances vary by bank and are not stated.
- DFSA (DIFC) and FSRA (ADGM) banking and onboarding rules were not reviewed.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
The Central Bank of the UAE maintains a fixed exchange rate of the dirham against the US dollar, committing to buy dirhams against dollars at 3.673 and to sell dirhams for dollars at 3.672 with eligible market counterparties. Federal; applies to the CBUAE's dealings with eligible market counterparties. The page does not state when the peg began.
The overriding objective of the CBUAE's monetary framework is maintaining the dirham's peg to the US dollar. Federal.
The Base Rate is the CBUAE's official monetary policy rate and is anchored to the US Federal Reserve's Interest on Reserve Balances rate. Federal. The page gives no numeric value; the related CBUAE page notes the alignment may be adjusted to support the peg.
The Central Bank determines the dirham's exchange rate regime after Cabinet approval and takes the measures needed to manage and control the official exchange rate. Federal Decree-Law No. 6 of 2025, Article 31(2)-(3).
Federal Decree-Law No. 6 of 2025 Regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business is in force, with an effective date of 16 September 2025. Federal; onshore UAE and non-financial free zones. DIFC and ADGM financial services are regulated by their own regulators.
Decretal Federal Law No. 14 of 2018 Regarding the Central Bank and Organization of Financial Institutions and Activities has been repealed by Federal Decree-Law No. 6 of 2025. Federal. References to the 2018 law in older bank documents and guidance should be read against the 2025 law.
No person may carry on any Licensed Financial Activity in or from the UAE without the required Central Bank licence, and the licensed activities include currency exchange and money transfer services. Federal Decree-Law No. 6 of 2025, Article 60(1)-(2) and Article 61(1)(e).
The CBUAE's AML/CFT Supervision Department supervises banks, exchange houses, finance companies and stored value facilities, and reporting entities must be connected to the goAML platform to file suspicious transaction reports with the UAE Financial Intelligence Unit. Federal; CBUAE-licensed financial institutions. DIFC and ADGM firms are supervised by their own regulators.
Federal Decree-Law No. 10 of 2025 on anti-money laundering and combating the financing of terrorism and proliferation financing is in force from 14 October 2025 and repealed Federal Decree-Law No. 20 of 2018. Federal. Article 41 (repeals) and Article 42 (entry into force two weeks after publication in the Official Gazette); effective date as shown by the CBUAE Rulebook.
Financial institutions must apply customer due diligence and ongoing monitoring, and must not open or maintain accounts in anonymous, fictitious, alias or numbered names. Federal Decree-Law No. 10 of 2025, Article 19(1)(b)-(c); also applies to designated non-financial businesses and professions and virtual asset service providers.
For a corporate customer, CBUAE-licensed financial institutions should identify and verify every individual who alone or jointly holds a controlling ownership interest of 25% or more, and only where none exists fall back on the individual who exercises control. CBUAE-licensed financial institutions (banks, exchange houses, finance companies and others). Sections 3.2.2 and 3.2.5 of the guidance; customers should generally be identified and verified before the relationship is established.
The Rulebook shows the guidance as in force with an effective date of 7/11/2025, but its legal-basis section still cites the 2018 AML law and its 2019 executive decision, which have been replaced. Confirm the current version with the bank.
Enhanced due diligence is mandatory for politically exposed persons with high-risk factors and for relationships involving high-risk countries, and can include senior management approval and establishing the source of funds and source of wealth of the customer and its beneficial owners. CBUAE-licensed financial institutions; Section 3.6 of the guidance. Senior management approval is expected where a customer or beneficial owner is a foreign PEP.
Same version caveat as ae-banking-g10.
A beneficial owner is a natural person who owns or ultimately controls a legal person directly or indirectly through 25% or more of the ownership, or who controls it by other means such as the right to appoint or remove most directors. Mainland and non-financial free zone legal persons. Excluded entities are set out in ae-establish-009. Where no person meets the test, the resolution provides fallback rules.
Cabinet Resolution No. 109 of 2023 replaced Cabinet Resolution No. 58 of 2020. JAFZA's guidance gives 15 December 2023 as its effective date; the resolution itself says it takes effect the day after Official Gazette publication.
The beneficial owner resolution does not apply to companies in financial free zones, to companies wholly owned by the federal or a local government (or by their wholly owned companies), or to the government partner where a government is a shareholder. Financial free zones (the DIFC and ADGM) run their own beneficial ownership regimes. Companies owned by a listed company subject to adequate disclosure rules are also exempt from the duty to hold beneficial ownership information.
The resolution says financial free zones without naming them; the DIFC and ADGM are the UAE's two financial free zones.
Withholding tax on UAE-sourced income paid to non-residents is set at 0%. Covers dividends, interest, royalties and service fees paid to non-residents, unless the income is attributable to a UAE permanent establishment or nexus; the Cabinet may set other rates.
An IBAN has been mandatory since 2012 for all electronic payments and receipts within and outside the UAE, except credit card payments. Federal; all bank accounts. The same page notes that many banks require a minimum monthly balance and may charge a fee below it, without stating amounts.
Passengers aged 18 or over must declare cash, cheques, promissory notes, payment orders, precious metals or stones with a value exceeding AED 60,000 or the equivalent in foreign currency. Stated in the Dubai Customs guide for passengers' belongings and cash declaration; amounts carried by passengers under 18 count towards the parent's or guardian's limit. The federal legal basis could not yet be checked.
Foreign investors need approval from the relevant federal authority to carry on activities of strategic impact, which under Cabinet Decision No. 55 of 2021 include security, defence and military activities; banks, exchange houses, finance companies and insurance; currency printing; telecommunications; and Hajj and Umrah services. Mainland activities. The list summarised in the source may not be complete; Dubai's guidance refers to seven strategic-impact sectors. Emirates may also keep their own lists of restricted activities.
Secondary source: the text of Cabinet Decision No. 55 of 2021 could not yet be checked. Chambers Doing Business In 2025 (UAE) gives a wider list of restricted sectors, including upstream oil and gas, water and electricity distribution, Quran memorisation centres and fisheries-related services.
Companies must keep a register of beneficial owners and submit any change in beneficial ownership information to the registrar within 15 days of the change. Entities covered by Cabinet Resolution No. 109 of 2023. Administrative penalties for breaches are set by Cabinet Resolution No. 132 of 2023 (not reviewed here).
Questions on this topic
14 statements on banking, foreign exchange and repatriation in the United Arab Emirates
