An exchange house has been fined Dh200 million ($54.45 million) by the UAE Central Bank for breaching anti-money laundering regulations, as the fight against illegal financial activity continues.
The banking regulator fined the exchange house for “significant failures” in its anti-money laundering, combating the financing of terrorism and illegal organisations framework, and related regulations, it said in a statement on Tuesday, without naming the exchange house.
The penalty is based on the results of the findings of examinations conducted by the regulator.
A financial sanction of Dh500,000 was also imposed on a branch manager, who has also been prohibited from holding any position within any licensed financial institutions in the UAE, the regulator said.
The UAE has made significant strides in the fight against financial crime in recent years. Effective policies on money-laundering and combating the financing of terrorism are key to the integrity and stability of the international financial system and the economies of nations, according to the International Monetary Fund.
Last year, the Emirates announced a nationwide action plan aimed at boosting its fight against illicit financial activity by introducing the 2024-27 National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing.
The strategy has 11 goals outlining the “legislative and regulatory reforms the UAE is taking to prevent the impact of illegal activities on society”, and was developed by the General Secretariat of the National Committee using World Bank Group methodology to ensure it meets international standards.
In August last year, the government amended its laws on anti-money laundering, and the financing of terrorism and illegal organisations. A National Committee for Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations was formed as a result.
In 2021, the government founded an Executive Office for Anti-Money Laundering and Counter-Terrorism Financing after passing an anti-money laundering and terrorism financing law in 2018.
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