Central Bank of UAE Takes Action Against Non-Compliant Exchange House

The Central Bank of the UAE (CBUAE) has imposed a substantial fine of Dh10.7 million on an exchange house for violating the country’s stringent anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. The announcement was made on Friday as part of the authority’s ongoing efforts to maintain financial system integrity.

Breach of Federal AML Law

The fine was issued under Article (14) of Federal Decree Law No. (20) of 2018, concerning Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations, along with its subsequent amendments.

The Central Bank stated that the exchange house failed to implement adequate AML/CFT policies and procedures, which led to the imposition of the financial penalty.

Regulatory Oversight and Enforcement

As part of its supervisory and regulatory mandate, the CBUAE conducts regular inspections and compliance checks across financial institutions operating in the country. The regulator reiterated its commitment to ensuring that all exchange houses - including their owners, management, and staff - strictly adhere to UAE laws and international standards.

Licence Revoked for Repeat Violations

This announcement follows a related enforcement action taken two days earlier, when the Central Bank revoked the licence of Al Nahdi Exchange and removed it from the official register.

The decision to revoke Al Nahdi Exchange’s licence came after a detailed examination revealed significant compliance failures across multiple areas, particularly with respect to:

Anti-Money Laundering

Combating the Financing of Terrorism

Adherence to international sanctions frameworks

Strengthening Financial Integrity in the UAE

The UAE continues to bolster its regulatory framework in line with global standards set by the Financial Action Task Force (FATF). The Central Bank’s latest enforcement actions serve as a warning to financial institutions operating in the country and underline the seriousness with which the UAE treats financial crimes.

The CBUAE emphasized that it will not tolerate non-compliance and will continue to take appropriate measures - including financial penalties and licence cancellations - against any institution that fails to meet its regulatory obligations.