The Central Bank of the UAE (CBUAE) has imposed a Dh3.5 million fine on an exchange house for violating anti-money laundering (AML) and counter-terrorism financing (CFT) laws. This action underscores the CBUAE’s commitment to maintaining the integrity of the UAE’s financial system.
Reasons for the Fine
The penalty, issued under Article 14 of Federal Decree Law No. (20) of 2018, resulted from an examination revealing the exchange house’s failure to comply with AML/CFT policies and procedures. The CBUAE did not disclose the name of the exchange house.
Increased Regulatory Scrutiny
The CBUAE has intensified its monitoring and tightened regulations on exchange houses and financial institutions to ensure strict adherence to government policies. This proactive approach aims to prevent financial crimes and maintain transparency within the financial sector.
CBUAE’s Commitment
The Central Bank emphasizes its dedication to ensuring that all exchange houses, their owners, and staff comply with UAE laws and regulations. These measures safeguard the transparency and integrity of the exchange house industry and the broader UAE financial system.
Previous Penalties
In the past year, the CBUAE also fined a bank operating in the UAE Dh5 million for similar violations related to anti-money laundering laws and funding illegal organizations. These actions demonstrate the CBUAE’s consistent enforcement of regulatory standards.
