Six exchange houses operating in the UAE have been fined by the UAE Central Bank for failing to meet the required levels of anti-money laundering compliance.
The banking regulator imposed a total penalty of Dh17.31 million ($4.71m) against the six exchange houses in accordance with Article 14 of the Federal Decree Law No 20 of 2018 on anti-money laundering (AML), combatting the financing of terrorism (CFT) and the financing of illegal organisations.
The UAE has established multiple legislation and taken numerous efforts to combat financial crime, as it has severe laws to deal with money laundering and terrorism financing.
The Ministry of Economy established a new anti-money laundering section in November of last year to verify that all non-financial enterprises and professionals follow local regulations.
To enhance the integrity of its financial system, Dubai established a special court in August that focuses on fighting money laundering and other financial crimes.
Earlier this year, the Dubai Misdemeanour Court found eight persons and three corporations guilty of cyber fraud and laundering stolen assets totaling Dh14 million.
In April, it fined an exchange house operating in the country over Dh500,000 for failing to meet the required standards of anti-money laundering compliance.
The central bank released new recommendations on Sunday to assist licensed financial institutions (LFIs) that lend to cash-intensive companies (CIBs), such as retail, trading, travel, and transportation, in combating money laundering and terrorism financing.
According to the SEC, LFIs that provide services to CIBs must use a risk-based approach in their anti-money laundering programs and assess CIB customers to establish their risk level.
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