UAE banks have tightened internal checks for delegated authority. As a result, Central Bank rules and AML laws now require careful verification before accepting any Power of Attorney.
Banks must follow strict AML/KYC guidelines from the Central Bank of the UAE, which means they review every POA closely to prevent fraud, money laundering, or misuse. This has led to many POAs being rejected if they don’t meet exact standards.
Here are the key things that usually decide if a bank will accept your POA in Dubai:
Proper Notarization and Attestation
The POA needs to be notarized by a UAE notary public (like at Dubai Courts or through eNotary). If it’s from outside the UAE, it must be attested by the issuing country’s authorities, the UAE embassy/consulate, and then the UAE Ministry of Foreign Affairs. Unnotarized, simple signed papers, or poorly attested foreign POAs are almost always turned down.
Clear and Limited Powers
Banks prefer specific wording that lists exactly what the agent can do (e.g., view statements, make deposits/withdrawals up to a limit, pay bills). Very broad or “general” POAs that give unlimited control often get refused, as banks want to avoid high-risk actions like opening new accounts, applying for loans/credit cards, or large transfers without extra checks.
Identity Verification Requirements
Federal AML law requires banks to verify representative authority thoroughly. This means banks check both the POA holder’s identity and the principal’s information. You must provide an Emirates ID, a passport, and sometimes additional verification.
Validity and Recent Date
Old, expired, or vague POAs won’t work, as banks often impose practical limits (e.g., preferring recent issuance or defined validity periods for foreign-issued POAs in certain cases).
Extra Restrictions in Practice
Even with a valid POA, banks may block things like receiving sale proceeds (e.g., from property) into the agent’s account, and funds often must go directly to the owner’s UAE account for AML reasons.
Transaction Limits
Most banks want POAs specifying maximum transaction amounts. For example, the POA might authorize transfers up to a certain limit. Without these limits, banks may restrict what you can do or reject the POA entirely.
Account-Specific Details
Generic POAs covering “all accounts” face more scrutiny than specific ones. Banks prefer POAs listing exact account numbers and types. This precision prevents confusion and unauthorized access attempts.
AML Compliance Impact on POA Acceptance
The 2025 updates to the Anti-Money Laundering framework (Federal Decree-Law No. 10 of 2025) significantly affect how banks handle POAs. These regulations require enhanced due diligence on all representatives acting through POAs.
Banks must now:
- Verify the beneficial ownership behind every POA transaction
- Screen POA holders against sanctions lists
- Monitor transactions for suspicious patterns
- Report unusual activity regardless of POA authorization
- Maintain detailed records of all POA-based transactions
If your POA does not provide enough information for these checks, banks will reject it. This includes POAs that do not clearly identify the beneficial owner or those lacking a proper source of funds documentation.
Common Reasons Banks Reject a POA
Banks check every detail before honoring a POA. These common issues can lead to rejection, even if the document is valid.
1. Insufficient Due Diligence Information
Banks need a detailed background on why you need the POA. If you cannot explain the legitimate purpose clearly, they may refuse to honor it. This applies especially to large transactions or international transfers.
2. Sanctions or Watch List Issues
If either the POA grantor or holder appears on any sanctions list, banks must reject the POA immediately. They cannot process transactions involving sanctioned individuals regardless of POA validity.
3. Suspicious Transaction Patterns
Banks monitor how POAs get used. If transaction patterns seem unusual or inconsistent with the stated purpose, they may suspend POA privileges. This happens even with initially accepted POAs.
4. Expired Verification Documents
Your Emirates ID or the grantor’s identification must be current. Banks reject POAs when supporting identification documents have expired, even if the POA itself remains valid.
How to Ensure Banks Accept Your POA
Follow these steps to maximize the chances your POA works at banks:
1. Start With the Bank
Contact the specific bank before creating your POA. Ask about their requirements, preferred formats, and mandatory elements. Some banks provide detailed checklists or templates.
2. Use Professional Legal Services
Have lawyers draft your banking POA rather than attempting DIY versions. Professionals understand current banking and AML requirements that change regularly.
3. Include All Required Details
Make sure your POA specifies exact banking powers, account numbers, transaction limits, and time periods. The more specific your document, the better.
4. Complete Proper Attestation
Never skip notarization or attestation steps. These prove your POA meets UAE legal standards and help banks verify authenticity quickly.
5. Keep Documentation Current
Update your POA when circumstances change. Additionally, ensure all supporting identification documents remain valid throughout the POA period.
Get Professional POA Assistance
Managing a Power of Attorney in Dubai involves strict rules and careful verification. Without proper guidance, it is easy to make mistakes that lead to delays, rejections, or unnecessary frustration.
Experts can check your documents, confirm compliance with Central Bank and AML rules, and advise on the correct type of POA for your needs. With professional support, you can complete transactions confidently while keeping your finances and family protected.
