The Central Bank of the UAE (CBUAE) has revoked the operating licence of Omda Exchange, removed the company from its official register, and imposed a financial penalty of Dh10 million, citing violations of UAE financial regulations.
The enforcement action was taken under Federal Decree-Law No. 14 of 2018 on the Central Bank and the Organisation of Financial Institutions and Activities, as amended, which grants the Central Bank authority to license, supervise, penalise, and revoke the licences of financial institutions operating in the UAE.
Table of Contents
Regulatory Breaches Identified
According to the Central Bank, the decision followed regulatory examinations and inspections that revealed failures to comply with the provisions of the Central Bank Law and related regulatory requirements. While the CBUAE did not disclose the specific nature of the violations, it confirmed that the breaches were serious enough to warrant both licence revocation and a substantial financial sanction.
Exchange houses are subject to heightened regulatory scrutiny due to their exposure to cash-based and cross-border transactions, making compliance with anti-money laundering (AML), counter-terrorism financing (CTF), governance, and operational controls a core regulatory obligation.
Legal Basis for the Enforcement Action
The action against Omda Exchange was issued pursuant to Federal Decree-Law No. 14 of 2018, which empowers the Central Bank to:
- Conduct inspections and supervisory reviews
- Impose administrative and financial penalties
- Revoke licences and strike entities from the official register
- Enforce compliance with AML and regulatory frameworks
This law forms the backbone of the UAE’s financial regulatory regime and underpins the Central Bank’s enforcement mandate across banks, exchange houses, and other financial institutions.
Strong Signal on Compliance Enforcement
By revoking the licence and imposing a Dh10 million fine, the Central Bank has reinforced its zero-tolerance approach to regulatory non-compliance. The move sends a clear message to exchange houses, fintech firms, and payment service providers that failures in compliance, governance, or regulatory controls can lead to the most severe sanctions, including permanent removal from the market.
The CBUAE reiterated that it will continue to take decisive action to ensure that financial institutions, their owners, and employees fully comply with UAE laws and regulations, safeguarding the integrity and stability of the country’s financial system.
Implications for Businesses and Investors
For businesses operating in the UAE’s financial sector, the Omda Exchange case underscores the importance of:
- Maintaining robust compliance and risk management frameworks
- Conducting regular internal audits and regulatory gap assessments
- Treating AML and regulatory compliance as board-level priorities
As the UAE continues to strengthen its position as a global financial and business hub, regulatory oversight is expected to remain firm, making compliance a critical factor for long-term sustainability.
