The UAE's Central Bank announced on Wednesday that it had imposed a Dh3.5 million fine on a money exchange house for failing to adhere to the country’s Anti-money Laundering (AML) and Combating the Financing of Terrorism (CFT) policies.

Although the name of the exchange house was not disclosed, the penalty was issued under Federal Decree Law No. (20) of 2018, which governs AML and CFT regulations. The Central Bank has recently intensified its monitoring efforts to ensure that financial institutions, including exchange houses, comply with government standards and regulations.

The fine came after an investigation by the Central Bank’s examination team, which revealed that the exchange house had not followed the necessary AML and CFT procedures. This enforcement action highlights the UAE's commitment to safeguarding the integrity of the financial system and maintaining transparency within the exchange house sector.

In a similar action last year, the Central Bank fined a bank Dh5 million for violating AML laws and for financing illegal organizations.

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