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CBUAE imposes administrative sanctions on exchange hous …

Abu Dhabi : The Central Bank of the UAE (CBUAE) on Wednesday has imposed administrative sanctions on an exchange house and its owner.

CBUAE has imposed sanctions on the owner and general manager of an exchange house operating in the UAE, pursuant to Articles 87 and 137 of the Decretal Federal Law No. (14) of 2018 regarding the Central Bank and Organization of Financial Institutions and Activities.

Significantly, the administrative sanctions came as a result of the examination findings conducted by the CBUAE and revealed that the exchange house had rented out its license.

Notably, the unnamed exchange house has been suspended “until the remediation is complete.” Its owner and general manager has also been prohibited to join any financial institution in the UAE for a year.

Accordingly, the CBUAE instructed the owner to take necessary actions and measures that the Central Bank deems appropriate to rectify the violation and prohibited the exchange house from conducting any operations and activities until the remediation is complete.

It is noteworthy that the CBUAE also prohibited the general manager from undertaking any designated function at any licensed financial institution in the country other than the exchange house in question for one year.

The CBUAE works to ensure that all exchange houses, their owners, and staff adhere to the UAE laws, regulations, and standards adopted by the Central Bank to protect the transparency and integrity of the exchange houses’ business and the UAE financial system through its supervisory and regulatory mandates.