Dubai - The name of the exchange house hasn't been disclosed.
The UAE Central Bank (CBUAE) has imposed a financial sanction on an exchange house operating in the country for flouting rules related to anti-money laundering and combating the financing of terrorism and illegal organisations.
The regulatory said its investigation revealed that the exchange company had a weak compliance framework and history to prevent money laundering and financing of terrorism. Hence, it imposed a financial penalty of Dh496,000 on the company.
The sanction was imposed on April 18, 2021.
The name of the exchange house hasn't been disclosed.
“The Central Bank is actively overseeing that all exchange houses, their owners, and staff abide by the UAE laws, regulations, and standards adopted by the CBUAE to safeguard the transparency and integrity of the exchange houses' business,” it said on Thursday.
The Central Bank had previously imposed financial sanctions on two exchange houses in October 2020 and in February 2021. In January, heavy penalties were imposed on 11 UAE banks as well not adhering to anti-money laundering regulations. The regulator imposed Dh45.75 million in financial sanctions on the banks.
The Central Bank aims to maintain high levels of AML/CFT compliance and warned that it will continue to impose further administrative and/or financial sanctions, as per the law, in cases of non-compliance.
waheedabbas@khaleejtimes.com