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The United Arab Emirates has imposed a fine of $1.3 million on a money exchange house for breaching financial regulations. This action aligns with the provisions outlined in Article 14 of the Federal Decree Law No. (20) of 2018, which specifically addresses Anti-Money Laundering, Combating the Financing of Terrorism, and the Financing of Illegal Organizations.

The Central Bank, in a statement, emphasized that this move is also in accordance with the authority vested in it by Article 137 of the Decretal Federal Law No. (14) of 2018, which focuses on overseeing financial institutions and activities.

The decision to impose the financial penalty follows a thorough appeal process, rooted in the outcome of an extensive examination carried out by the Central Bank. The examination uncovered that the exchange house had deficiencies in its compliance framework concerning essential risk analysis and the implementation of (enhanced) due diligence policies and procedures. These aspects are pivotal in preventing money laundering and the financing of terrorist activities.

This enforcement action underscores the Central Bank’s unwavering commitment to upholding the transparency and integrity of exchange houses’ operations. By doing so, it contributes to safeguarding the overall financial system of the Emirates.

The statement issued by the Central Bank reiterated its dedication to supervisory and regulatory mandates. It emphasized that the institution diligently ensures that all exchange houses, including their owners and staff, adhere to UAE laws, regulations, and standards established by the Central Bank. This effort is aimed at maintaining the transparency, integrity, and security of exchange house activities and the broader financial landscape of the UAE.

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