UAE Central Bank Imposes Financial Penalty on Exchange Company

On April 18, 2021, the Central Bank of the United Arab Emirates imposed a financial penalty on an exchange company operating in the country, in accordance with the provisions of Article 14 of Federal Decree-Law No. (20) of 2018 concerning the combating of money laundering and the financing of terrorism and unlawful organizations. The inspection results conducted by the Central Bank revealed that the exchange company's compliance framework with anti-money laundering and anti-terrorism financing requirements was weak. The Central Bank considered the company's historical record of weak compliance and imposed a fine of 496,000 dirhams. As the regulatory authority overseeing exchange companies operating in the country, the Central Bank effectively supervises the compliance of all exchange companies and their owners and employees with the applicable laws in the country, as well as the regulations and standards set by the Central Bank, with the aim of maintaining transparency and integrity in the operations of exchange companies.