The Central Bank of United Arab Emirates (CBUAE) has canceled the license of Sundus Exchange in a major enforcement action and imposed a hefty fine on the company. In addition, the announcement regarding the revocation of the license has been made today itself, i.e, 17 June 2025.
In this article, we are trying to give you a detailed report about this action by the CBUAE. In addition, we will point out the reasons that led Sundus Exchange to this result. Moreover, you will get to know how this action can impact you.
What Led to the Action Against Sundus Exchange?
The CBUAE took this action as per Article (14) of the Federal Decree Law No. 20 of 2018 highlights anti-money laundering or AML and Combating the Financing of Terrorism and Illegal Organisation. In addition, it also involves its subsequent amendments.
The CBUAE took this decision after a detailed investigation that discovered significant failures with the violation of Anti-Money Laundering regulations and compliance requirements.
It found that the exchange has not adhered to the framework and rules to prevent money laundering and the financing of terrorism. Thus, the organisation decided to shut it down to save the integrity of the United Arab Emirates (UAE) financial system.
The CBUAE has mentioned it is fully committed to ensuring all licensed exchange houses, with their owners and employees, follow the country’s laws and the rules that the Central Banks have set.
Licence Cancelled Permanently
The Central Bank of United Arab Emirates (CBUAE) highlighted that the decision to revoke the license of Sundus exchange has been taken to preserve the integrity of its financial system.
Now, the exchange house has been permanently closed from conducting any licensed financial activities within the country. It matches the broader effort to empower oversight of financial institutions.
Sundus Exchange Fined AED 10 Million
Besides license cancellation, it has been fined AED 10 million for its regulatory violation. The Central Bank has clarified that the fine is issued after a detailed investigation, which proved that the exchange house had failed to take the right measures of AML. However, the exchange has received warnings in the past. This sanction has sent a strong message across the United Arab Emirates (UAE): Non-compliance with the AML or CFT will not be tolerated.
Why UAE is stricting rules?
This action on the Sundus Exchange is a part of a big regional push to develop confidence in digital finance and protect retail investors from unverified or risky advice. Surprisingly, there has been a trend in small-ticket investments in products, such as Bitcoin, gold, etc, throughout the Gulf.
Many people are investing based on the influencer content that doesn’t include proper research or a disclaimer. The SCA has also highlighted the risks globally. 51 percent of investors accept the fact that they don’t always check the influencer’s credibility in the UK, which leads to poor decisions or scams.
A recent study shows that Gen Z and millennial investors rely heavily on social media over expert advice. Moreover, this generation is also doesn’t of the sponsored influencer. Thus, the UAE is eyeing tightening its regulations to prevent people from falling into any scams in the future.
Implications for the Sector
The CBUAE’s decision to close the Sundus exchange is likely to compel other exchange houses and financial institutions to reassess and enhance their protocols. Experts in the industry believe that this move could lead to improved regulatory audits and significant cautions throughout the financial institutions. It is especially true in the money exchange and remittance industry.
