The UAE Central Bank has imposed a fine of more than AED5.2 million ($1.4 million) on an exchange house operating in the country.

The exchange outlet, which remains unidentified, was found to have a "weak compliance framework" regarding the required due diligence policies and procedures to prevent money laundering and financing of terrorism, the banking authority said on Wednesday.

The central bank did not provide further details.

The financial sanction is pursuant to Article 14 of the Federal Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations, and Article 137 of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organisation of Financial Institutions and Activities.

(Writing by Cleofe Maceda; editing by Seban Scaria)