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Exchange house will pay penalty of Dhs496,000 for its incompetence to block money laundering, terror financing

Princess Tarfa

The Central Bank of the UAE (CBUAE) has placed a financial sanction on an exchange house that was working in the UAE on April 18, 2021, in accordance with Article 14 of the Federal Decree-law No. (20) of 2018 on Anti-Money Laundering and Opposing the Financing of Terrorism and Illegal Institutions.

The results of the CBUAE's investigation found that the exchange house has a lax regulatory system in place to deter money laundering and terrorist funding.

The CBUAE levied a Dhs496,000 financial penalty on the swap building. The CBUAE also acknowledged the exchange house's low enforcement background before assessing the duration of the sanction. The CBUAE, as the supervisory authority of exchange houses operating in the UAE, actively monitors that all exchange houses, their operators, and their staff abide by UAE rules, legislation, and guidelines embraced by the CBUAE to protect the openness and dignity of the exchange houses' industry.

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