The Central Bank of the UAE has imposed a Dh3.5 million financial penalty on an unnamed exchange house for violations of anti-money laundering and counter-terrorism financing regulations.
The fine was issued under Article 14 of Federal Decree Law No. 20 of 2018, following an inspection that identified non-compliance with AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) obligations.
According to a statement released on June 2, the Central Bank said the enforcement action followed a detailed examination of the exchange house’s operations. It did not disclose the name of the entity or the specific nature of the violations.
The CBUAE stated that it continues to supervise exchange houses and other licensed financial institutions to ensure full adherence to regulatory requirements designed to uphold the integrity of the UAE’s financial system.
The UAE has increased enforcement in recent years as part of efforts to meet international compliance standards, including those set by the Financial Action Task Force (FATF). The latest penalty adds to a series of sanctions issued against exchange houses and banks since 2023 as the UAE works to exit the grey list and strengthen its financial oversight regime.
