The Central Bank of UAE ('CBUAE') announced, on 27 December 2021, its decision in a case relating to an exchange house operating in the UAE, issued on 13 December 2021, in which it had imposed a financial sanction of AED 352,000 (approx. €84,800) on the exchange house, pursuant to Article 14 of the Federal Decree Law No. (20) of 2018 on Anti Money Laundering and Combating the Financing of Terrorism and Illegal Organisations ('AML/CFT') ('the Law'), following failures to achieve appropriate levels of compliance in relation to the anti money laundering ('AML') and Sanctions Compliance Framework as per the deadlines specified by the Law.

Background to the decision 

In particular, the CBUAE noted that the exchange house operating in the UAE had failed to achieve appropriate levels of compliance in accordance with Article 14 of the Law after the CBUAE had provided a sufficient period for all exchange houses to comply with the Law.

Findings of the CBUAE

Notably, the CBUAE found that the exchange house operating in the UAE had not achieved appropriate levels of compliance in relation to its AML and Sanctions Compliance Framework according to the deadlines specified by the Law. 

Outcomes

Ultimately, the CBUAE noted that it had imposed an AED 352,000 (approx. €84,800) financial sanction on the exchange house pursuant to Article 14 of the Law. Furthermore, the CBUAE highlighted that all exchange houses in the UAE had been provided a sufficient period to remedy any shortcomings and ensure compliance in accordance with the Law and its executive regulation, and had been informed that further shortcomings would result in penalties as specified by law. 

You can read the press release here.