The hefty fine sent out a clear signal about the UAE’s solid position against money laundering offenses
The Central Bank (CBUAE) of the UAE has fined another exchange house in Abu Dhabi in just two weeks. The penalty this time is AED 100 million after a review of Anti-Money Laundering (AML) practices.
Examinations by the CBUAE found that the Exchange House had significant weaknesses in its Anti-Money Laundering, Combating the Financing of Terrorism, Illegal Organizations framework and related laws, so it applied financial sanctions.
The action occurred one week after an exchange firm was fined AED 200 million. It was also found during the investigation that the exchange house lacked proper Anti-Money laundering and terrorism financing controls. A fine of AED 500,000 was imposed on the branch manager, who was also banned from being employed in any licensed financial institution in the United Arab Emirates.
The most recent financial sanction was issued in accordance with Article (137) of Decretal Federal Law No. (14) of 2018, which deals with the UAE’s central bank regulations.
A recent statement by the CBUAE declared that it will keep monitoring exchange houses across the country to ensure that they obey all relevant UAE laws and regulations. Maintaining the honesty and openness of the national financial system is the main responsibility of the central bank.
The regulator did not reveal the name of the fined exchange house, the large fine indicates how serious the issues were and points to the regulator’s increased attention on the country’s financial sector due to rising global expectations regarding AML standards.
Because of this move, the UAE continues to maintain high financial standards and meet global expectations, especially for dealing with issues of illicit financial flows.
All authorized financial firms should evaluate their internal policies and practices to ensure compliance with the guidelines and risk management frameworks set by the CBUAE in relation to AML in UAE.
