In a major regulatory action, the UAE Central Bank imposed a huge fine of Dh200 million on an onshore exchange house for violating anti-money laundering and compliance rules. The fine is indicative of the bank’s continued efforts to clamp down on regulation in the financial services industry.
The inquiry disclosed egregious derelictions in the exchange house’s operations, including poor risk assessment procedures and non-conformity with required reporting requirements. Authorities informed that such negligence could undermine the integrity of the UAE’s financial system.
Apart from the Dh200 million fine on the bank, a branch manager who had direct involvement in the breaches was personally fined Dh500,000. This level of individual responsibility reflects the regulator’s zero-tolerance approach towards staff complicity in financial crime.
The UAE Central Bank reiterated its commitment to upholding financial stability and safeguarding the nation from unauthorized financial transactions. It also called upon all financial institutions to strictly comply with the country’s anti-money laundering systems and reporting required.
