By Jouslin Khairallah — AML, Corporate & Compliance, KH Legal.
Your bank has asked you to prove where your money comes from. It feels like an accusation — but in the UAE it is a legal duty on the bank, not a sign of suspicion. Here is what to prepare.
Why is my bank asking for proof of funds?
Because the law requires it. Under the Anti-Money Laundering law (Federal Decree-Law No. 10 of 2025) and its Executive Regulation (Cabinet Decision No. 134 of 2025), banks must carry out customer due diligence and, particularly where the relationship is higher risk, obtain and verify the source of funds and source of wealth. The request is a regulatory obligation on the bank and does not, by itself, indicate suspicion.
What’s the difference between source of funds and source of wealth?
Source of funds is where this specific money came from. Source of wealth is how your overall assets were accumulated. A bank may ask about both, and the supporting documents will differ.
What documents will I need?
There is no single legal checklist. Requirements are risk-based, set by each bank and vary with your profile. Typical evidence includes bank statements, salary certificates or employment contracts, audited accounts, the trade licence, sale or purchase contracts, inheritance or gift records, and tax filings.
What happens if I can’t evidence my funds, and can the bank close my account?
Where a bank cannot complete its due diligence, it may delay onboarding, restrict transactions or, in some cases, close the account. Banks retain discretion. A well-prepared file reduces friction but cannot guarantee a bank’s decision.
Your bank has asked for source-of-funds documentation?
Whether you need to respond to a request or simply want to be ready, our Corporate & Compliance team can help you prepare your file. info@khlegal.ae · +971 4 427 0845 · WhatsApp +971 55 561 4957.
Sources & further reading
- Anti-Money Laundering law — Federal Decree-Law No. 10 of 2025
- Executive Regulation of the AML law — Cabinet Decision No. 134 of 2025
Primary legislation is published on the UAE Legislation portal: uaelegislation.gov.ae. This article is general information, not legal advice.