CBUAE Revokes Omda Exchange Licence, Fines Dh10M Over Regulatory Breaches

The Central Bank of the UAE (CBUAE) has revoked the licence of Omda Exchange, removed the company from its official register and imposed a financial sanction of Dh10 million, following supervisory examinations that identified serious regulatory failures.

According to the CBUAE, the measures were taken pursuant to the Decretal Federal Law on the Central Bank and the Organisation of Financial Institutions and Activities, as amended, which empowers the regulator to impose administrative and financial sanctions on licensed entities that breach UAE banking and financial regulations.

Findings of regulatory examinations

The revocation and fine followed inspections conducted by the central bank, which found that Omda Exchange had committed violations of the Central Bank Law and related regulations governing exchange houses. While the regulator did not disclose specific details of the breaches, similar enforcement actions in the UAE have typically involved shortcomings in anti-money laundering (AML) controls, counter-terrorist financing (CTF) measures, governance standards, record-keeping, or compliance with customer due-diligence requirements.

Under UAE law, exchange houses are subject to strict supervisory oversight due to their role in remittances, currency exchange and cross-border financial flows, which are considered high-risk areas for financial crime if not properly regulated.

Legal framework governing exchange houses

Exchange houses operating in the UAE must comply with a comprehensive regulatory framework that includes:

• The Central Bank Law, which sets out licensing requirements, supervisory powers and enforcement mechanisms
• AML and CFT legislation, requiring firms to implement robust internal controls, customer identification procedures and transaction monitoring systems
• CBUAE regulations and standards, covering corporate governance, risk management, reporting obligations and staff conduct

The law authorises the central bank to impose a range of sanctions, including warnings, financial penalties, suspension of activities and full licence revocation, depending on the severity of the violations.

Pattern of increased enforcement

The action against Omda Exchange aligns with a broader trend of heightened regulatory enforcement by the CBUAE in recent years. The central bank has repeatedly stressed that financial institutions, including banks, exchange houses and money service providers, must maintain strong compliance cultures and continuously upgrade their systems to meet evolving regulatory expectations.

Several exchange houses and financial firms have faced fines, operational restrictions or licence cancellations for compliance failures, reflecting the UAE’s commitment to protecting the integrity of its financial system and meeting international standards set by bodies such as the Financial Action Task Force (FATF).

Protecting the financial system

In a statement, the CBUAE reaffirmed that, through its supervisory and regulatory mandate, it seeks to ensure that all exchange houses, their owners and employees comply with UAE laws, regulations and standards. The objective, the regulator said, is to promote transparency, prevent illicit financial activity and safeguard the stability and reputation of the UAE’s financial sector.

The revocation of Omda Exchange’s licence serves as a clear warning to market participants that non-compliance will attract decisive regulatory action, regardless of the size or profile of the institution involved.

 

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