The UAE Central Bank on Wednesday said it imposed Dh1.925 million penalty on an exchange house for not doing proper due diligence and not adhering to rules to prevent money laundering.
Without disclosing the name of the exchange house, the regulator said financial sanctions were imposed on the company after an investigation revealed that the exchange house “failed to obtain letters of no objection from the Central Bank to enter into certain business relationships.”
Exchange houses are a major stakeholder in the UAE’s remittances and currency exchanges industry with billions of dollars of transactions every year. The regulator has imposed financial sanctions on the exchange houses in the past for not adhering to the rules.
The apex bank’s findings also showed that the exchange house had “a weak compliance framework regarding the required due diligence policies and procedures to prevent money laundering and the financing of terrorism.”
The Central Bank said it will ensure that all exchange houses, their owners and staff abide by the UAE laws, regulations and standards to safeguard the transparency and integrity of the UAE financial system.