UAE Central Bank Revokes Licence of Al Nahdi Exchange Over Major Compliance Breaches

The Central Bank of the UAE (CBUAE) has revoked the license of Al Nahdi Exchange. However, violations of the Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) are some of the reasons behind this revocation. Moreover, this move effectively removes this exchange from the Register of Exchange Houses authorized to work in the country.  

CBUAE’s Regulatory Oversight on Al Nahdi Exchange

The license cancellation was executed under Article (137) of Decretal Federal Law No. (14) of 2018, which governs the regulation of the financial institutions in the UAE. Furthermore, the CBUAE conducted on revealed the significant compliance failures, like breaches of AML, CFT, and international sanctions obligations. 

The CBUAE has experience overseeing financial entities in the nation. Therefore, this revocation of the license showcases its commitment to empowering the high regulatory standards. 

Statement from the Central Bank

The CBUAE said in an official statement that this decision was taken to save the integrity and transparency of the UAE’s financial system. Moreover, the central bank highlighted that all financial institutions in the country are expected to strictly adhere to the law and regulations. 

In addition, this adherence would be more serious in matters concerning financial crimes and national security. This firm action sends a clear message to all exchange houses and their staff on the importance of keeping full compliance with the regulatory framework of the nation.

 Protecting the UAE’s Financial Ecosystem

The revocation of the license of Al Nahdi Exchange is part of the broader efforts of the CBUAE to empower financial stability in the UAE. Moreover, the decision also supports the CBUAE’s aim to prevent illicit activities through strong supervision. Furthermore, the Central Bank is focused on protecting the reputation and trustworthiness of the UAE’s financial sector on a global scale. 

Now, Al Nahdi Exchange is restricted from operating in the financial services market in the UAE. As of now, there is no further penalties have been disclosed. However, the CBUAE confirmed its ongoing commitment to monitoring and working against violations. Therefore, all financial exchanges operating in the region must follow the regulation. 

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