The Central Bank of the UAE (CBUAE) has imposed a financial penalty of Dh2 million on an exchange house operating in the country for violating anti-money laundering and counter-terrorism financing (AML/CFT) procedures.
The action was taken pursuant to Article 137 of Decree Federal Law No. 14 of 2018 concerning the Central Bank and the Organisation of Financial Institutions and Activities, as amended. The name of the exchange house was not disclosed in the statement issued by the regulator.
The fine follows a regulatory examination by the CBUAE, which concluded that the exchange house had failed to implement required AML/CFT policies and procedures by UAE law and CBUAE standards.
The regulator stated that it continues to exercise its supervisory mandate to ensure that exchange houses, their owners, and employees comply with local regulations and international standards designed to protect the UAE’s financial system from illicit activity.
Earlier this year, the CBUAE issued updated guidance on AML/CFT for licensed financial institutions and stepped up inspections of money exchange providers, which are considered higher-risk entities due to their cash-based operations and international remittance services.
