REGULATORY UPDATE | UNITED ARAB EMIRATES
UAE Introduces New PSTR Framework for Suspicious Transactions and Fund Freezing
What reporting entities need to know about UAEFIU Regulation No. (1) of 2026
ISSUED BY
UAE Financial Intelligence Unit
EFFECTIVE DATE
14 December 2026
APPLIES TO
Financial institutions, DNFBPs and VASPs
SUMMARY
UAEFIU Regulation No. (1) of 2026 helps the UAE Financial Intelligence Unit (UAEFIU) act faster when funds linked to crime may be moved. It introduces the Postponement Suspicious Transaction Report (PSTR), an urgent report for cases where there is an imminent risk that suspicious funds could be transferred or withdrawn. It also gives the UAEFIU binding Suspension, Freezing and Monitoring Orders that reporting entities must act on within set timeframes. The regulation takes effect on 14 December 2026.
What is a PSTR?
A PSTR is an urgent report filed when a reporting entity suspects that funds may be the proceeds of crime and there is an imminent risk that they could be moved or withdrawn. It gives the UAEFIU time to review the case before a suspicious transaction is completed.
A PSTR does not replace the Suspicious Transaction Report (STR). It is an additional mechanism, and existing STR obligations continue to apply.
| PSTR | STR | |
|---|---|---|
|
Purpose |
Allows the UAEFIU to review a case before a suspicious transaction is completed |
Reports suspicion that funds are linked to crime |
|
When used |
Imminent risk that funds could be transferred, withdrawn or dissipated |
Whenever there are reasonable grounds to suspect |
|
Timing |
Filed within 24 hours where the risk is imminent; the transaction is generally held for up to three business days unless the UAEFIU authorises it earlier |
Filed without delay under existing obligations |
When a PSTR might be needed?
Indicative considerations include:
- A transaction above a value threshold. The threshold does not apply to higher-threat cases, such as organised crime, third-party money laundering and terrorism financing.
- A customer who is a politically exposed person (PEP) or otherwise high risk.
- Information suggesting that the owner of the funds may leave the country.
- Circumstances in which the funds cannot be effectively monitored.
No single indicator proves criminal activity. The decision to report should rest on the legal requirements, the available information and the circumstances of the case.
What orders can the UAEFIU issue?
| Order | Maximum period | What the reporting entity must do |
|---|---|---|
|
Suspension Order |
Up to 10 business days |
Stop the specified transaction. Acknowledge receipt through the Integrated Enquiry Management System (IEMS) within two hours. |
|
Freezing Order |
Up to 30 days, extendable by the Attorney General |
Freeze the funds. Lift the freeze when the order is cancelled or expires, unless it is extended. |
|
Monitoring Order |
As set in the order |
Monitor transactions involving the specified customers. |
If an order cannot be carried out, for example because the funds have already moved, the reporting entity must give the UAEFIU a written explanation with supporting documents within two hours of receiving the order.
How should reporting entities prepare?
- Update policies: Add PSTRs and the handling of the three order types to AML/CFT procedures.
- Define escalation: Decide who can make urgent decisions and who is the Compliance Officer or MLRO contact for orders.
- Plan for 24/7 cover: Be able to receive, acknowledge and carry out orders at any time, including weekends and public holidays.
- Train staff: Explain the difference between a PSTR and an STR, and the prohibition on tipping off.
- Check system access: Confirm that goAML and IEMS access, user permissions and handovers work.
- Keep an audit trail: Record decisions, communications and actions, and keep the records for at least five years.
Why this matters for your business
Identifying and reporting suspicious activity is no longer enough. Reporting entities must also be able to pause transactions, carry out UAEFIU orders quickly and document what they did. The immediate priority is to test existing reporting, escalation and out-of-hours arrangements before 14 December 2026, and to review the Regulation itself to confirm what applies to your activities.
Important note
This article is for general information only. It is not legal advice and does not replace the regulation, official UAEFIU instructions or guidance from the relevant supervisory authority. Consult the official Arabic text where interpretation is required, and obtain legal or compliance advice for your specific activities.
Source
UAE Financial Intelligence Unit: announcement of Regulation No. (1) of 2026
Regulatory overview | UAE | October 2026