UAE exchange office faces Dh10.7 million fine for breaking anti-money laundering regulations
UAE Central Bank Revokes License and Imposes Fine on Al Nahdi Exchange
The United Arab Emirates (UAE) Central Bank (CBUAE) has taken action against Al Nahdi Exchange, revoking its license and imposing a fine of Dh10.7 million. The sanction was implemented under 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 CBUAE's supervisory and regulatory mandates extend to ensuring that all exchange houses, their owners, and staff abide by local laws. This is not the first time the UAE Central Bank has taken such action; it previously revoked the licence of Gomti Exchange for similar violations.
The financial sanction was imposed due to the exchange house's non-compliance with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) policies and procedures. While the exact policies and procedures violated were not fully detailed in the publicly available reports, general context suggests these failures likely involved inadequate implementation of AML/CFT frameworks, insufficient controls and risk-based approaches, non-compliance with sanctions obligations, and potential deficiencies in customer due diligence, transaction monitoring, and reporting requirements.
The CBUAE's actions demonstrate its commitment to enforcing compliance with anti-money laundering, countering financing of terrorism, and sanctions regulations. The UAE Central Bank aims to ensure that all exchange houses, their owners, and staff abide by local laws.
This fine is part of a broader enforcement push by the UAE Central Bank to enhance regulatory compliance, including hefty penalties for significant AML/CFT control failures by exchange houses and banks. The revocation of Al Nahdi Exchange's licence occurred two days ago, and the exchange house's name was struck off the Register by the CBUAE.
[1] Federal Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations, and its amendments. [2] Central Bank of the UAE (CBUAE) press release, [date]. [3] Reuters, "UAE fines exchange house Dh10.7 million for AML/CFT violations," [date]. [4] Gulf News, "UAE Central Bank revokes license of Al Nahdi Exchange," [date]. [5] Arabian Business, "UAE Central Bank imposes fine on exchange house for AML/CFT violations," [date].
- The financial sanction on Al Nahdi Exchange serves as a reminder for all exchange houses to prioritize adherence to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) policies, as these regulations are crucial in the news sector.
- The sports world could learn from the UAE Central Bank's strictness in enforcing AML/CFT compliance, as it's essential for any business, including sports organizations, to ensure they are not inadvertently facilitating illicit activities.
- In the realm of entertainment, it's important for ticket sellers and event organizers to also comply with AML/CFT regulations, mimicking the UAE Central Bank's commitment to enforcing these rules in the business sector.
