UAE Central Bank slaps Dhs600,000 fine on exchange house for using civilian vehicle to transport money

The Central Bank of the UAE (CBUAE) has imposed a financial sanction on an exchange house operating in the UAE, pursuant to the Decretal Federal Law no.14 of 2018 regarding the Central Bank and Organisation of Financial Institutions and Activities, as amended by Decretal Federal Law no. 25 of 2020.

The exchange house used a civilian vehicle to transport the money instead of using Cash-in-Transit Agent. By doing so, it violated the CBUAE regulations and knowingly put the lives of its employees at risk.

On 27th June 2021, the CBUAE imposed a fine of Dhs600,000 on the exchange house for violating obligations to use a Cash-in-Transit Agent when transporting cash, and to report any occurrence material or crucial development to the CBUAE immediately.

The Exchange House appealed the sanction within the time limit applicable for appeal. On 28th November 2021, that appeal was rejected and the Central Bank’s procedures have been concluded.

The CBUAE, through its supervisory and regulatory mandates, works to ensure that all licensed financial institutions operating in the UAE, including exchange houses, abide by UAE laws, regulations and standards adopted by the CBUAE, to safeguard the transparency and integrity of the exchange houses business and enhancing the efficiency of the UAE financial system.

WAM