Abu Dhabi – The Central Bank of the United Arab Emirates (CBUAE) has imposed a financial penalty of Dh10.7 million on an unnamed exchange house for breaching federal anti-money laundering and counter-terrorism financing regulations.
The penalty was issued under Article (14) of the Federal Decree Law No. (20) of 2018, which addresses Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations. The CBUAE stated that the fine followed a comprehensive examination of the exchange house’s activities, revealing major deficiencies in its compliance with AML/CFT policies, procedures, and sanctions obligations.
In its official statement, the Central Bank noted that the exchange house failed to adhere to regulatory standards designed to uphold the integrity of the UAE’s financial system. The authority did not disclose the name of the entity but emphasized that appropriate supervisory action had been taken following due process.
The CBUAE reaffirmed its commitment to ensuring that all exchange houses operating in the country, along with their management and staff, strictly comply with the nation’s laws and regulatory frameworks. It stressed that these measures are critical for maintaining financial transparency, preventing misuse of the financial sector, and safeguarding the stability of the UAE’s economy.
The regulatory action comes amid a series of recent enforcements targeting non-compliant money exchange operations in the UAE. In earlier cases, the Central Bank revoked the licenses of Gomti Exchange and Al Nahdi Exchange for similar violations related to money laundering controls.
The CBUAE continues to reinforce its supervisory role, applying strict oversight to ensure that all licensed financial entities implement robust internal controls and maintain the highest standards of compliance with anti-financial crime legislation.
