UAE Central Bank issues Dh2 million fine to Malik Exchange for anti-money laundering violations

The Central Bank of the UAE (CBUAE) on Wednesday has revoked the licence of Malik Exchange, struck it off the official register, and issued a Dh2 million financial penalty, pursuant to Article (14) of the Federal Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations and its amendments.

The decision followed examinations by regulators who said they uncovered 'violations and failures' tied to Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations framework, and related regulations. Officials didn’t spell out every lapse but pointed to non-compliance with the framework laid down under Federal Decree Law No. 20 of 2018.

The CBUAE, through its supervisory and regulatory mandates, endeavors to ensure that all exchange houses, their owners, and staff abide by the UAE laws, regulations and standards established by the CBUAE to maintain transparency and integrity of the financial transactions and safeguard the UAE financial system.