UAE Revokes Currency Exchange License Over Violations

The Central Bank of the United Arab Emirates (CBUAE) revoked the license of an operational currency exchange office after uncovering serious violations in compliance with anti-money laundering and counter-terrorism financing regulations. The decision is part of the UAE's efforts to maintain the transparency and reliability of its financial system.

What does the decision mean?

The revocation was carried out under Article 137 of the 2018 Federal Law on Central Regulation of Financial Institutions (Federal Decree Law No. 14). This step not only results in the removal of the concerned currency exchange from the official register, but also sends a strict message to industry participants: violation of regulations entails serious consequences.

Essence of the regulation

The UAE Central Bank places great emphasis on ensuring that financial service providers, especially currency exchanges, comply with anti-money laundering (AML), counter-terrorism financing (CFT), and international sanctions regulations.

Currency exchanges are one of the most sensitive points in the financial system as they are often involved in cash transactions and international money transfers. Therefore, such institutions are under increased supervision and must expect severe consequences for any regulatory violations.

What exactly happened?

The Central Bank’s investigation revealed several serious deficiencies in the operations of the concerned currency exchange:

Inadequate internal control mechanisms for preventing money laundering.

Missing or weak customer identification and risk assessment processes.

Inadequate cooperation with regulatory authorities.

Repeated warnings were ignored.

The financial institution failed to comply with repeated notices and corrective measures, leading the Central Bank to use its strongest tool: license revocation.

What does this mean for other market participants?

This case sends a clear message to all financial service providers in the UAE: compliance with regulations is not optional, but a mandatory requirement. The Central Bank’s oversight role includes regularly checking currency exchanges, and taking necessary actions to protect the financial system when required.

This recent decision also aims to close loopholes enabling money laundering, terrorism financing, or sanctions violations, thereby strengthening the country’s financial integrity.

What should residents pay attention to?

Those who regularly use currency exchange services in Dubai or other emirates should ensure that the exchange in question has a valid CBUAE license. A list of reputable institutions is available on the Central Bank’s official website.

Summary

The UAE’s financial sector is one of the most rigorously supervised systems in the world. The Central Bank continuously works to ensure that financial institutions meet the highest international standards. The recent license revocation clearly shows that the country applies zero tolerance towards money laundering and regulatory violations, thus protecting the economic stability and international reputation.

(Source of the article is a press release from the Central Bank of the UAE (CBUAE).)