The Central Bank imposes a financial penalty on an exchange company operating in the country

The Central Bank of the United Arab Emirates imposed a financial penalty on an exchange company operating in the country, in accordance with the provisions of Article 14 of Federal Decree-Law No. (20) of 2018 regarding countering money laundering and combating the financing of terrorism and financing illegal organizations, and Article 137 of Federal Decree-Law No. (14) ) for the year 2018 regarding the Central Bank and the regulation of financial establishments and activities.



The financial penalty, amounting to 1,925,000 dirhams, comes after the inspection conducted by the Central Bank, the results of which revealed that the exchange company concerned did not obtain the no-objection letters from the Central Bank that are required to enter into certain commercial relations.

These results also showed the weakness of the company's compliance framework with regard to the due diligence policies and procedures required to prevent money laundering and terrorist financing.



The Central Bank of the United Arab Emirates, through its oversight and supervisory functions, works to ensure that all exchange companies operating in the country, and their owners and employees, comply with the laws in force in the country and the regulations and standards approved by the Central Bank, with the aim of preserving the transparency and integrity of the work of exchange companies and protecting the country's financial system.

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