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The Central Bank of the UAE (CBUAE) has imposed a financial sanction and a fine of 4.80 million dirhams ($1.3 million) on an exchange house operating in the UAE, for failing to comply with its regulations related to anti-money laundering.
The financial sanction came after investigations by the central bank found that the exchange had a weak compliance framework regarding the policies and procedures to prevent money laundering and the financing of terrorism, it said in a statement on Thursday.
The name of the exchange house was not disclosed.
The sanctions were imposed under 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.
The UAE has in recent years passed strict laws to prevent money laundering and the financing of terrorism.
(Writing by Brinda Darasha; editing by Seban Scaria)
