As part of its ongoing crackdown on financial compliance, the Central Bank of the UAE (CBUAE) has imposed a fine of AED 10.7 million on an Exchange house. In July, the Central Bank had officially revoked the operating licences of Gomti Exchange and Al Nahdi Exchange, removing the companies from the register of licensed exchange houses in the UAE. The revocation follows a thorough examination revealing serious anti-money laundering (AML), counter-terrorism financing (CTF), and sanctions compliance violations (Central Bank of the UAE).
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Full Licence Revocation, No Operational Grace Period
Under Article (137) of Decretal Federal Law No. (14) of 2018 regarding the regulation of financial institutions, the CBUAE has exercised its full authority to revoke and remove the licence immediately. Al Nahdi Exchange has ceased all operations in the UAE financial ecosystem and is no longer permitted to carry out exchange house activities.
What Triggered the Action?
CBUAE’s review found multiple significant failures within Al Nahdi Exchange’s compliance framework, particularly around:
- Monitoring and detecting suspicious AML/CTF transactions
- Adherence to international sanctions and illegal organisation rules
The Central Bank described the revocation as essential to maintaining the integrity and transparency of the UAE’s financial system (Gulf News).
Broader Context: Heightened Enforcement in Exchange House Sector
The revocation of Al Nahdi Exchange follows a pattern of aggressive enforcement by CBUAE across licensed exchange houses:
- In August 2025 a penalty of AED 10.7 million was imposed on another Exchange house.
- Another exchange firm received AED 800,000 in sanctions in the third week of July for compliance lapses (Zawya).
- Earlier this year, the Central Bank imposed AED 4.1 million in administrative fines on three exchange houses for AML/CFT deficiencies (thenationalnews.com).
- In May 2025, a separate exchange house faced a massive AED 200 million penalty and its manager was banned from holding roles in UAE financial institutions due to “significant failures” in its AML/CTF program.
These measures underscore CBUAE’s intensified scrutiny and its resolve to hold both institutions and management personally accountable. This chain of penalties and revocations complement a wider enforcement trend by the CBUAE which had brought it the credits for being removed from Grey lists and honoured for its proactive AML/CTF measures.
Corporate Services Implications
Exchange House Risk Exposure
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- Immediate cessation of Al Nahdi Exchange’s operations highlights how swiftly CBUAE can act. Companies reliant on financial intermediaries must verify AML/CTF compliance before engagement.
Compliance Programme Expectations
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- Exchange houses and associated service providers must regularly assess and strengthen their compliance policies, including internal audits, transaction monitoring, and sanctions-check protocols.
Managerial Accountability
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- CBUAE is increasingly targeting not just institutions but also individual executives. Managers must ensure personal effectiveness in compliance oversight or risk professional restrictions.
Due Diligence for Clients
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- Businesses should:
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- Confirm partner regulatory status via the CBUAE register or official versions.
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- Demand current compliance certification from exchange houses or consultancies.
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- Monitor and review financial intermediaries’ compliance track records.
Raising the Bar on AML/CTF and Sanctions Compliance
The revocation of Al Nahdi Exchange’s licence signals that the UAE’s financial regulator is raising the bar on AML/CTF and sanctions compliance. For businesses, this reinforces the need for enhanced due diligence, robust partner screening, and proactive risk management within the exchange services network.
Benoy Jacob is a journalist-turned-business consultant, currently serving as the Director of Client Relations at ATB Corporate in Abu Dhabi. With a keen eye for market trends and business strategy, he helps companies expand, build strategic partnerships, and optimize their operations in the UAE. Benoy brings a unique perspective on economic policies, trade ecosystems, and investment opportunities in Abu Dhabi and the wider MENA region.