An exchange house has been fined AED 200 million ($54.45 million) by the Central Bank for violating anti-money laundering (AML) regulations in the UAE.
The Central Bank announced on Tuesday that the exchange house was found to have committed significant breaches of the UAE’s AML standards, particularly in anti-money laundering, countering the financing of terrorism (CFT), and dealings with illicit entities. The regulator did not reveal which exchange house was involved.
The financial penalties were imposed following comprehensive reviews and assessments made by the Central Bank.
In addition, a branch manager from the same exchange house has been fined AED 500,000. Central Bank added that the individual will also be prohibited from holding any position in licensed financial institutions across the UAE.
Lately, the UAE has recently made significant progress in preventing financial crimes. According to the IMF, anti money laundering policies help protect both the world’s financial system and the security of each country’s economy.
To support these efforts, the UAE launched the 2024-2027 National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing last year.
Among its 11 major objectives, the plan recommends legislative reforms to stop illegal activities in financial markets. The strategy was prepared by the General Secretariat of the National Committee following the World Bank Group’s methodology for meeting worldwide standards.
In August last year, the UAE upgraded its laws on anti-money laundering in UAE, financing of terrorism and illegal organizations. Therefore, a National Committee for Anti-Money Laundering and Countering Financing of Terrorism and Illegal Organizations was established.
The UAE established the Executive Office for Anti-Money Laundering and Counter-Terrorism Financing in 2021. Prior to that, foundational legislation on AML and terrorism financing was enacted in 2018.
