UAE central bank slaps $27.8mn fine on exchange house

The Central Bank of the UAE (CBUAE) has imposed a financial sanction of AED100 million on an exchange house following failures in anti-money laundering controls.

The penalty was issued pursuant to Article 137 of the Decretal Federal Law No. 14 of 2018, regarding the Central Bank and Organisation of Financial Institutions and Activities, and amendments thereto.

The financial sanction stems from examination findings conducted by the CBUAE, which revealed failures in the exchange house’s anti-money laundering and combating the financing of terrorism and illegal organisations framework, and related regulations.

The CBUAE has stated that through its supervisory and regulatory mandates, it “endeavours to ensure that all exchange houses, their owners, and staff abide by the UAE laws, regulations and standards established by the CBUAE to maintain transparency and integrity of the financial transactions and safeguard the UAE financial system.”

The central bank has not disclosed the identity of the exchange house or provided details about the nature of the violations discovered during its examinations.

The penalty represents part of the CBUAE’s ongoing efforts to maintain compliance with anti-money laundering and counter-terrorism financing regulations across the UAE’s financial sector.