UAE Central Bank imposes fine of Dh4.1 million on exchange houses for non-compliance with the anti-money laundering law.
The United Arab Emirates (UAE) Central Bank has been actively enforcing compliance with Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) regulations and Sharia governance rules within the country's financial sector.
Last month, a local bank's Islamic window was suspended from onboarding new customers for six months and fined more than Dh3.5 million for non-compliance with Sharia governance rules. The banking regulator also imposed a Dh5.9 million fine on a branch of an unnamed foreign bank for similar AML/CFT violations.
In a significant move, the Central Bank imposed a Dh100 million fine on an exchange house for "significant failures" in its AML/CFT framework, while another exchange house was fined Dh200 million in May for the same offence.
The Central Bank's statement on Monday emphasized the importance of ensuring that all exchange houses, their owners, and staff abide by UAE laws, regulations, and standards to maintain transparency and integrity of financial transactions and safeguard the UAE financial system.
The UAE's commitment to ensuring compliance with both AML/CFT and Sharia governance rules within the financial sector is evident in its recent initiatives. In 2021, the UAE established the Executive Office of Anti-Money Laundering and Counter-Terrorism Financing, and the government amended its laws against money laundering and the financing of terrorism and crime groups.
Moreover, the UAE Central Bank introduced AML/CFT guidelines in 2023 for licensed financial institutions, focusing on the use of digital identification systems for customer due diligence. The Emirates announced an action plan in 2024 to boost its fight against illicit financial activity, introducing the National Strategy Anti-Money Laundering, Countering the Financing of Terrorism, and Proliferation Financing for the years 2024-2027.
The Central Bank has shown a commitment to ensuring regulatory compliance, as evidenced by the sanctions imposed on several financial institutions. However, a comprehensive list of the fines imposed since 2021 is not readily available in the public domain. To obtain such a list, one can visit the official Central Bank of the UAE website, review UAE government financial regulatory news portals, or consult industry reports or compliance advisory firms active in the UAE financial sector.
The UAE Central Bank continues its fight against illegal financial activity, imposing financial sanctions on entities that fail to comply with AML/CFT policies and procedures. This proactive approach is crucial in maintaining the UAE's reputation as a global financial hub and ensuring the security and integrity of its financial system.
- The UAE Central Bank fined a local bank's Islamic window Dh3.5 million for non-compliance with Sharia governance rules.
- Another exchange house was fined Dh200 million in May for significant failures in its Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) framework.
- The Central Bank introduced AML/CFT guidelines in 2023 for licensed financial institutions, focusing on digital identification systems for customer due diligence.
- The UAE announced an action plan in 2024 to boost its fight against illicit financial activity.
- To obtain a list of fines imposed by the Central Bank since 2021, one can visit the official Central Bank of the UAE website or consult industry reports or compliance advisory firms.
- The Central Bank's enforcement of AML/CFT regulations and Sharia governance rules reflects the UAE's commitment to personal-finance, banking-and-insurance, and policy-and-legislation within the industry.
- The commendable steps by the Central Bank in regulating the financial sector have significant implications for wealth-management and business-related news in general-news, crime-and-justice, and politics.
- The UAE's tough stance on financial misconduct is a strategic move to maintain the country's position as a hub for business, finance, and investment.
