In a continuation of its strict regulatory oversight, the Central Bank of the UAE (CBUAE) has imposed administrative fines totaling AED 4.1 million on three licensed exchange houses for failing to comply with the nation’s anti-money laundering and counter-terrorism financing (AML/CFT) regulations.
This latest action, announced on July 7, 2025, builds on the UAE’s broader AML crackdown which saw over AED 339 million in penalties imposed in previous enforcement rounds earlier this year. (Read more)
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Why were the exchange houses fined?
According to the official CBUAE statement, the decision followed a comprehensive regulatory inspection that revealed:
- Weak internal controls
- Deficiencies in AML compliance frameworks
- Failure to adhere to risk-based customer due diligence
The Central Bank emphasized that such violations contradict the provisions of Federal Decree Law No. (20) of 2018 on AML/CFT and Cabinet Decision No. (10) of 2019 regarding its implementing regulations.
“The Central Bank, through its supervisory and regulatory mandates, works to ensure that all licensed financial institutions operate in line with UAE laws and regulations,” the statement noted.
Persistent and escalating enforcement
The action reflects CBUAE’s resolve to ensure the financial sector remains resilient, compliant, and protected from illicit finance. Earlier this year, the regulator conducted widespread inspections and levied record fines across banks and exchange houses—culminating in more than AED 339 million in penalties by May 2025.
The WAM report also underscores the Central Bank’s alignment with international standards such as FATF and its role in maintaining the UAE’s global standing as a responsible financial hub.
Industry implications
The targeted penalties serve as a fresh warning for exchange houses, banks, and fintech operators to reinforce:
- AML policies and employee training
- Suspicious transaction monitoring and reporting systems
- Customer due diligence and record-keeping procedures
Public and investor confidence
The UAE continues to invest heavily in strengthening its financial governance framework. By proactively identifying and penalizing violators, the Central Bank enhances investor trust and positions the UAE as a transparent, well-regulated international financial center.
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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.