The Central Bank of the UAE has imposed a financial penalty of Dh10.7 million on an unnamed exchange house after a regulatory inspection found breaches of anti-money laundering (AML) and counter-terrorism financing (CFT) rules.
The penalty was issued under Article 14 of Federal Decree Law No. 20 of 2018, which governs AML and the financing of terrorism and illegal organisations in the country. The central bank stated that the exchange house failed to meet obligations related to sanctions compliance, as well as broader AML and CFT procedures.
The regulator did not name the firm but said the decision followed an internal examination that uncovered multiple shortcomings. The fine is part of the CBUAE’s ongoing efforts to strengthen the financial system’s defences against illicit finance and ensure that licensed entities operate in line with the country’s regulatory standards.
The UAE has stepped up enforcement in the financial sector following a grey listing by the Financial Action Task Force (FATF) in March 2022. Since then, authorities have introduced a series of reforms to improve transparency, reporting obligations, and supervisory oversight across financial institutions, including exchange houses, real estate firms, and designated non-financial businesses and professions.
The central bank reiterated its commitment to enforcing compliance among all licensed financial institutions and maintaining the integrity of the country’s financial ecosystem.
