UAE Central Bank fines exchange house Dh100 million for AML failures

Abu Dhabi: The Central Bank of the UAE (CBUAE) has fined a second exchange house in just two weeks. This time, the penalty is a hefty Dh100 million following an investigation into anti-money laundering (AML) violations.

"The financial sanction is based on the results of the findings of examinations conducted by the CBUAE, which revealed significant failures in the Exchange House’s Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations framework, and related regulations," the CBUAE said in a statement.

The move follows a week after an exchange house was fined Dh200 million. That investigation too found major problems in the exchange house’s anti-money laundering and terrorism financing controls. The branch manager was also fined Dh500,000 and banned from working in any licensed financial institution in the UAE.

The latest financial sanction was issued under Article (137) of Decretal Federal Law No. (14) of 2018, which governs the UAE's central banking and financial regulatory framework.

In a statement, the CBUAE reiterated its commitment to ensuring all exchange houses in the country—along with their owners and staff—strictly follow UAE laws and regulations. The central bank emphasized that maintaining the transparency and integrity of the nation’s financial system is a top priority.

While the name of the penalised exchange house was not disclosed, the size of the fine signals the severity of the violations and reflects the regulator’s increased scrutiny of the UAE’s financial sector amid growing global expectations for robust AML compliance.

The move comes as the UAE continues to strengthen its financial oversight and meet international standards, especially in light of its ongoing efforts to address concerns raised by global watchdogs over illicit financial flows.

This enforcement action serves as a reminder to all licensed financial institutions in the UAE to review their internal compliance systems and ensure full alignment with CBUAE guidelines and risk management practices.