UAE Regulator Intensifies Scrutiny with Dh3.5 Million Penalty
The Central Bank of the UAE has levied a Dh3.5 million fine on an unnamed exchange house for breaches of anti-money laundering and counter-terrorism financing regulations. This action is part of a broader enforcement initiative targeting financial institutions failing to meet compliance standards.
The penalty was imposed under Article 14 of Federal Decree Law No. of 2018, which governs AML/CFT measures in the UAE. An examination by the CBUAE revealed that the exchange house failed to implement adequate policies and procedures to detect and prevent illicit financial activities.
This enforcement follows a series of similar actions by the CBUAE. On May 29, the regulator imposed a Dh100 million fine on another exchange house for significant failures in its AML/CFT framework. Earlier in May, a separate exchange house faced a Dh200 million penalty, and its branch manager was fined Dh500,000 and barred from holding any position in licensed financial institutions within the UAE.
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The CBUAE has taken action against foreign banks operating in the country. Two branches were fined a total of Dh18.1 million for AML/CFT violations, with individual penalties of Dh10.6 million and Dh7.5 million, respectively.
These measures reflect the UAE's commitment to strengthening its financial regulatory framework and aligning with international standards. The country was previously placed on the Financial Action Task Force grey list in 2022 due to concerns over its AML regime but was removed in 2024 after implementing significant reforms.
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