UAE exchange house fined $1.4 million for insufficient policy on terrorism financing

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The United Arab Emirates has issued a $1.4 million fine on an exchange house for not sufficiently following policy to prevent money laundering and financing terrorism, the official Emirates News Agency WAM reported on Wednesday.

The fine was reportedly issued after the Central Bank of the UAE (CBUAE) investigated the the operation.

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“The CBUAE, through its supervisory and regulatory mandates, works to ensure that all exchange houses, their owners and staff abide by the UAE laws, regulations and standards adopted by the CBUAE to safeguard the transparency and integrity of the exchange houses’ business and the UAE financial system,” WAM reported.

The financial sanction was reportedly issued in line with Article 14 of the Federal Decree Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations, and Article 137 of the Decretal Federal Law No.14 of 2018 regarding the Central Bank & Organization of Financial Institutions and Activities.

The fined company was not named.

Earlier this year, senior officials in the UAE reaffirmed the Gulf country’s commitment to combat money laundering and terrorist financing.

The UAE has been implementing an array of sophisticated actions to combat financial crime and strengthen its anti-money laundering and counter-terrorist financing framework, which is in line with the country’s National action Plan and National Strategy for AML/CFT.

To date, the competent UAE authorities have made unprecedented progress in adopting international standards for AML/CFT.

The CBUAE established a dedicated department in 2020 to handle all Anti-Money Laundering and Combatting the Financing of Terrorism matters (AML/CFT), which the Banking Supervision Department handled previously.

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