The Central Bank of the UAE has imposed a AED5.2 million ($1.4 million) fine on an exchange house in the country for a “weak compliance framework.”
The sanction was imposed after the regulator found that “the exchange house had a weak compliance framework regarding the required due diligence policies and procedures to prevent money laundering and financing of terrorism,” a statement on Wam said.
The move is pursuant to the country’s federal law on anti-money laundering and terror financing – which the central bank has been focusing on in recent years.
The statement said: “The CBUAE, 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 the CBUAE to safeguard the transparency and integrity of the exchange houses’ business and the UAE financial system.”
The bank did not name the fined exchange house, but it said it was operating in the UAE.
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