Dubai is well known as one of the Middle East’s leading financial hubs. Overseas remittances are an essential part of corporate operations—covering payments for trade transactions, the transfer of investment funds, and more. However, the UAE government and individual banks apply strict international Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regulations. Without proper document preparation and understanding of the procedures, companies may face delays, transfer limits, or even outright rejection of their transactions. In this article, we outline the key regulations and practical tips that companies in Dubai should be aware of when planning overseas remittances.
Banks in the UAE generally require a clear explanation of the transaction purpose, the source of funds, and recipient details before processing a transfer. For large overseas remittances from corporate accounts, the bank’s compliance department will often be directly involved in the review. If the destination country is on an international sanctions list or classified as a high-risk jurisdiction, the transfer may be delayed or canceled in accordance with Central Bank guidelines. Below, we focus on three of the most commonly used banks in UAE business to guide you through the rules for corporate remittances from Dubai.
1. Emirates NBD (ENBD)
As one of Dubai’s largest commercial banks, ENBD often requires submission of transaction invoices, contracts, tax invoices, and shipping documents for overseas transfers. Depending on the purpose and amount, the review process can take up to two weeks. In many cases, transfers exceeding USD 100,000 require prior approval from the compliance department. Recently, for transfers to high-risk countries, banks have also begun requesting Ultimate Beneficial Owner (UBO) information of the recipient.
2. Abu Dhabi Commercial Bank (ADCB)
ADCB applies a very thorough Know Your Customer (KYC) process. When sending funds to a new business partner, the bank may request the recipient company’s business license, registered address, and tax identification number. Even for existing partners, documents may need to be updated periodically. If the business purpose is unclear or proof of fund origin is insufficient, the transfer may be held for an extended period. It is advisable to prepare all documents in English or Arabic in advance to avoid delays.
3. Mashreq Bank
Known for its convenient digital remittance services, Mashreq Bank is nevertheless conservative when it comes to regulatory compliance. For large transfers, a Telegraphic Transfer (TT) application form must be completed, and original invoices and contracts must be submitted. For certain Asian and African countries, prior approval from the Central Bank may be required, and during the approval process, remittance limits may be temporarily imposed.
General Considerations
- Document retention: All records and supporting documents related to overseas transfers must be kept for at least five years.
- Pre-transfer consultation: Before initiating a transfer, inform your bank representative of the transaction purpose, amount, and destination country to obtain a checklist of required documents—this can help shorten processing time.
- Proof of funds: Without legitimate documentation such as sales records, contracts, or tax filings, the bank may reject the transfer.
Overseas remittances from Dubai-based companies are not simple financial transactions—they are processes that combine international regulations with internal bank reviews. While the specific rules may vary by bank, they are all based on the policies of the UAE Central Bank. For smooth transfers, it is crucial to prepare all documents and records thoroughly from the earliest stages, maintain ongoing communication with the bank, and obtain prior approval for high-risk destinations or large sums. Consulting with a professional advisor can help minimize risks and ensure stable global business operations.
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This article has outlined the bank regulations to consider when sending overseas remittances from Dubai-based companies. Premia TNC’s expert team has extensive experience and knowledge, offering one-on-one tailored consulting to help you launch and run your business successfully in Dubai. In addition to corporate formation and operational consulting, we also provide advisory services for accounting, taxation, and visas. If you require assistance, please feel free to contact us.