Firm found to have weak compliance framework in preventing money laundering

The Central Bank of the UAE (CBUAE) has ordered an exchange house to pay a hefty fine of more than AED1.9 million ($517,000) for violations related to anti-money laundering regulations.

The exchange house failed to obtain letters of no objection from the central bank to enter into “certain business relationships”, the CBUAE said in a statement on Wednesday, without revealing the name of the exchange house.

The firm was also found to have a weak compliance framework in preventing money laundering and terrorist financing.

“The financial sanction… is the result of the findings of an examination conducted by the CBUAE,” the central bank said.

“The CBUAE… works to ensure that all exchange houses, their owners and staff abide by the UAE laws, regulations and standards… to safeguard the transparency and integrity of the exchange houses’ business and the UAE financial system.”

The sanction is 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, as well as Article 137 of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organisation of Financial Institutions and Activities.

zawya