United Arab Emirates exchange business penalized AED 800,000 for breaching anti-money laundering regulations
In the first week of July 2021, the Central Bank of the UAE (CBUAE) imposed fines totalling Dh4.1 million on three money exchange houses for failing to comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
The regulatory shortcomings were deemed serious enough to warrant these financial penalties, which are part of the CBUAE's ongoing efforts to strengthen the AML/CFT regulatory framework and ensure financial institutions uphold strict compliance measures.
The exchange houses were found to have failed to comply with AML/CFT policies and procedures. The penalties were imposed following an examination conducted by CBUAE officials.
On June 24, a separate money exchange house was fined Dh2 million by the CBUAE for similar AML/CFT violations.
The CBUAE's actions serve as a reminder of the importance of adhering to AML/CFT regulations in the UAE. The fines are part of the CBUAE's efforts to protect the UAE financial ecosystem from illicit financial activity.
The CBUAE has also imposed a financial sanction of Dh800,000 on an unspecified money exchange house. This fine was imposed under Article (137) of Decretal Federal Law No. (14) of 2018 concerning the Central Bank and the Organisation of Financial Institutions and Activities, along with its subsequent amendments.
The CBUAE's actions underscore its role in safeguarding the UAE's financial system from potential threats. Through its supervisory and regulatory powers, the CBUAE aims to ensure that all exchange houses, their owners, and staff operate in full compliance with UAE laws and the standards set by the regulator.
The CBUAE's actions highlight its ongoing commitment to promoting transparency, integrity, and accountability in the exchange house sector. The fines serve as a warning against dealing with unlicensed companies, as per the UAE authority's statements.
The CBUAE's ongoing efforts aim to ensure that all exchange houses, their owners, and staff operate in full compliance with UAE laws and the standards set by the regulator. The CBUAE reaffirmed its commitment to enforcing the legal and regulatory framework that governs financial institutions in the UAE.
These actions by the CBUAE demonstrate its proactive approach to enforcing the legal and regulatory framework that governs financial institutions in the UAE, contributing to the UAE’s broader crackdown on money laundering and terrorism financing.
- The fines imposed by the Central Bank of the UAE (CBUAE) on multiple money exchange houses demonstrate its proactive approach in enforcing the legal and regulatory framework that governs businesses in the banking-and-insurance and finance industries.
- The CBUAE's actions, including the imposition of fines for violations of anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, are part of the broader general-news campaign to crackdown on such activities in the UAE.
- In addition to imposing fines, the CBUAE also underscores its role in safeguarding the UAE's financial system from potential threats, including crime-and-justice activities like money laundering and terrorism financing.
- The CBUAE's commitment to promoting transparency, integrity, and accountability extends beyond the exchange house sector, as it reaffirms its dedication to ensuring businesses in the UAE operate in compliance with the given laws and regulatory standards.
