KNOW THE IMPORTANCE OF ANTI-MONEY LAUNDERING LAWS IN THE UAE
HANI AL JASMI ADVOCATES & LEGAL CONSULTANTS
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The UAE Central Bank has penalized an exchange house operating in the country for failing to achieve the appropriate levels of compliance with anti-money laundering regulations.
The banking regulator imposed a fine of AED 1.92 million ($525,527) on the exchange house in accordance with the law on anti-money laundering, combating the financing of terrorism and the financing of illegal organizations.
“The fine is the result of the findings of an examination conducted by the Central Bank, which revealed that the exchange house failed to obtain letters of no objection from the regulator to enter into certain business relationships,” the regulator said on Wednesday.
“The 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 UAE has strict laws to prevent money laundering, as well as the financing of terrorism, and has issued regulations over the years to clamp down on financial crime.
Last year, the country established the Executive Office of Anti-Money Laundering and Counter-Terrorism Financing, an agency to deal with money launderers, organizations and people suspected of financing terrorists and organized crime. In 2020, the Department of Commerce established the Anti-Money Laundering Division to ensure that all non-financial businesses and professionals comply with local laws.
The central bank strives to ensure that all exchanges and their employees comply with UAE law to protect the transparency and integrity of the country's financial system, the regulator said.
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