UAE Hits Harder Against Money Laundering With Dh339m In Recent Fines
The UAE is ramping up efforts to combat money laundering and terrorism financing with a string of high-value penalties issued in recent months — totaling over Dh339 million — against both local exchange houses, foreign bank branches, and insurance companies operating in the country.
In the latest action, the Central Bank of the UAE (CBUAE) on Tuesday imposed Dh12.3 million in fines on six exchange houses for breaching anti-money laundering (AML) regulations. The fines followed inspections that uncovered multiple violations, including failures to follow the country's AML and counter-terrorism financing (CFT) framework.
This move comes just a week after the Central Bank slapped a Dh3.5 million fine on another exchange house for similar failures. Investigators cited significant lapses in the firm's adherence to AML/CFT policies and procedures.
The crackdown intensified late last month with one exchange house fined Dh100 million, only days after another was hit with an even larger penalty of Dh200 million. In that case, the branch manager was personally fined Dh500,000 and permanently banned from working in any UAE-licensed financial institution.
Foreign banks haven't been spared either. The Central Bank recently penalised two UAE branches of international banks with a combined Dh18.1 million in fines — one receiving Dh10.6 million, the other Dh7.5 million — for failing to meet AML/CFT compliance standards.
In February, an exchange house operating in the UAE, was given a penalty of Dh3.5 million. Additionally, five banks and two insurance companies were fined a combined Dh2.62 million by the UAE Central Bank a month later.
Across all these cases, regulators found a common thread: systemic weaknesses in how institutions monitored and reported suspicious transactions and verified the identities of clients and beneficiaries.
The UAE's crackdown is no longer limited to the banking sector either. Authorities are expanding their regulatory net to include sectors that have traditionally been outside the formal financial system but are at high risk for abuse — such as real estate, gold and jewellery trading, auditing, and corporate service providers.
To boost effectiveness, the UAE Ministry of Economy has teamed up with Dubai Police to tighten surveillance of suspicious transactions in these sectors. Their collaboration includes creating direct and secure data-sharing channels, especially for beneficial ownership details — essentially identifying the true individuals behind corporate structures and financial dealings.
With fines now reaching into the hundreds of millions and bans being enforced at the individual level, the message from UAE regulators is clear: there is zero tolerance for institutions that fail to protect the financial system from abuse.
As the UAE continues its efforts to meet global compliance standards and remain off international watchlists, businesses operating in high-risk sectors are now under increased pressure to upgrade their internal controls — or face steep penalties.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Tribune
6 days ago
- Daily Tribune
Ebdaa CEO Joins Key AML/CFT Conference in Iraq
Dr. Khaled Al-Ghazzawi, CEO of Ebdaa Microfinance, took part in the second edition of the 'Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Conference' held in Baghdad, Iraq. The conference, held under the theme 'Challenges Facing Arab Banks in Complying with International Regulations and Meeting Correspondent Banking Requirements,' was organized under the patronage of H.E. Mr. Mohammed Shia Al Sudani, Prime Minister of Iraq. It was jointly hosted by the Central Bank of Iraq, the Union of Arab Banks, and the Iraqi Private Banks League.
Gulf Insider
11-06-2025
- Gulf Insider
UAE Central Bank Fines 6 Exchange Houses $3.3m
The Central Bank of the UAE imposed financial sanctions on six exchange houses, amounting to AED12.3m ($3.3m). The sanctions were pursuant to Article (14) of the Federal Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations and its amendments. The financial sanctions were imposed based on the findings of examinations conducted by the Central Bank, which revealed the violations and failures of the six exchange houses to comply with the AML/CFT framework, and related regulations. The Central Bank, through its supervisory and regulatory mandates, endeavours to ensure that all exchange houses, their owners, and staff abide by national laws, regulations and standards established by the CBUAE to maintain transparency and integrity of the financial transactions and safeguard the country's financial system. Also read: UAE To Launch Unified Card For People Of Determination
Gulf Insider
10-06-2025
- Gulf Insider
UAE Hits Harder Against Money Laundering With Dh339m In Recent Fines
The UAE is ramping up efforts to combat money laundering and terrorism financing with a string of high-value penalties issued in recent months — totaling over Dh339 million — against both local exchange houses, foreign bank branches, and insurance companies operating in the country. In the latest action, the Central Bank of the UAE (CBUAE) on Tuesday imposed Dh12.3 million in fines on six exchange houses for breaching anti-money laundering (AML) regulations. The fines followed inspections that uncovered multiple violations, including failures to follow the country's AML and counter-terrorism financing (CFT) framework. This move comes just a week after the Central Bank slapped a Dh3.5 million fine on another exchange house for similar failures. Investigators cited significant lapses in the firm's adherence to AML/CFT policies and procedures. The crackdown intensified late last month with one exchange house fined Dh100 million, only days after another was hit with an even larger penalty of Dh200 million. In that case, the branch manager was personally fined Dh500,000 and permanently banned from working in any UAE-licensed financial institution. Foreign banks haven't been spared either. The Central Bank recently penalised two UAE branches of international banks with a combined Dh18.1 million in fines — one receiving Dh10.6 million, the other Dh7.5 million — for failing to meet AML/CFT compliance standards. In February, an exchange house operating in the UAE, was given a penalty of Dh3.5 million. Additionally, five banks and two insurance companies were fined a combined Dh2.62 million by the UAE Central Bank a month later. Across all these cases, regulators found a common thread: systemic weaknesses in how institutions monitored and reported suspicious transactions and verified the identities of clients and beneficiaries. The UAE's crackdown is no longer limited to the banking sector either. Authorities are expanding their regulatory net to include sectors that have traditionally been outside the formal financial system but are at high risk for abuse — such as real estate, gold and jewellery trading, auditing, and corporate service providers. To boost effectiveness, the UAE Ministry of Economy has teamed up with Dubai Police to tighten surveillance of suspicious transactions in these sectors. Their collaboration includes creating direct and secure data-sharing channels, especially for beneficial ownership details — essentially identifying the true individuals behind corporate structures and financial dealings. With fines now reaching into the hundreds of millions and bans being enforced at the individual level, the message from UAE regulators is clear: there is zero tolerance for institutions that fail to protect the financial system from abuse. As the UAE continues its efforts to meet global compliance standards and remain off international watchlists, businesses operating in high-risk sectors are now under increased pressure to upgrade their internal controls — or face steep penalties.
