By Jouslin Khairallah, Founder & Managing Director, Head of Litigation, and Dr. Abdultaiyab Bahrainwala, Partner, Head of Corporate.
Why is my bank asking for proof of funds?
Because the law requires it. Under the Anti-Money Laundering law (Federal Decree-Law No. 10/2025) and its Executive Regulation (Cabinet Decision No. 134/2025), 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.
If your bank has asked for source-of-funds documentation — or you want to be ready — our Corporate & Compliance team can help you prepare and respond. Contact us: info@khlegal.ae · +971 4 427 0845 · WhatsApp +971 55 561 4957.
Related reading
- AML Compliance Lawyers in Dubai and the UAE
- UAE Cabinet Resolution No. 55 of 2025: KYC Rules
- Banks’ Liability for Returns on Frozen Accounts
- UAE Sanctions Law: A Compliance Guide