Abu Dhabi: The Central Bank of the UAE (CBUAE) has penalized six exchange houses operating in the UAE for not complying with the AML & Sanctions Compliance Frameworks set by the apex bank before the deadline.
The financial sanctions made are pursuant to Article 14 of the Federal Decree Law No.20 of 2018 on Anti-Money Laundering and Combatting the Financing of Terrorism and Financing of Illegal Organizations (AML/CFT Law), the pertinent articles and decisions of the Cabinet and Central Bank Board of Directors in relation to AML/CFT.
$47,12,784.38 worth of penalty has been imposed by the CBUAE for these organizations who failed to become compliant by the deadline set for the end of 2019.
Earlier in 2019, the UAE Central Bank had instructed the exchange houses operating in the UAE to correct all their operational any shortcomings in line with the new AML/CFT regulations and adhere to the provisions under the law by the end of the year.
The central bank had informed the exchange houses that further shortcomings would result in penalties under the Federal Decree Law No.20 of 2018 and its executive regulation.
The CBUAE will continue to work closely with all financial institutions in the UAE to achieve and maintain high levels of AML/CFT compliance and will continue to impose further administrative and/or financial sanctions, as per the law, in cases of non-compliance.