The UAE Central Bank has imposed a fine of $524,000 (Dh1,925,000) on an exchange house operating in the country for violation of a number of laws.
During an inspection conducted by the Central Bank, it revealed that the exchange house had failed to obtain letters of no objection from the bank to enter into certain business relationships, according to the Emirates News Agency (WAM).
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The fine was imposed on the exchange house, pursuant to 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 Organisations, and Article 137 of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organisation of Financial Institutions and Activities.
The findings also showed that the exchange house had a weak compliance framework regarding the required due diligence policies and procedures to prevent money laundering and the financing of terrorism.
The Central Bank, 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 it to safeguard the transparency and integrity of the exchange houses’ business and the UAE financial system.
Read more: UAE central bank issues new guidelines on anti-money laundering
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