The Central Bank of the UAE (CBUAE) has revoked the licence of Malik Exchange and imposed a fine of Dh2 million after the company was found in breach of anti-money laundering and counter-terrorism financing (AML/CFT) regulations. The exchange house has also been removed from the Central Bank’s official register.

The decision followed a regulatory investigation, which concluded that the company failed to comply with the UAE’s Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations framework. According to the Central Bank, the violations were serious enough to warrant both financial and operational penalties, effectively shutting down the exchange.

Strong message to financial institutions

The CBUAE stressed that it regularly monitors financial institutions, including exchange houses, to ensure strict adherence to national laws and international standards. The authority said it will continue to take “deterrent action” against companies that fall short of their obligations.

“Through its supervisory and regulatory mandates, the Central Bank ensures that all exchange houses, their owners and staff abide by UAE laws designed to safeguard the transparency and integrity of the national financial system,” the regulator said in a statement.

The move underlines the UAE’s efforts to strengthen financial oversight and prevent the misuse of its banking and exchange sector for money laundering or terrorism financing.

Part of wider crackdown

Over the past two years, the UAE has tightened its regulatory framework in line with global best practices. Several exchange houses and financial institutions have faced fines or licence suspensions for failing to comply with AML/CFT rules.

The country has also established new bodies, such as the Executive Office of Anti-Money Laundering and Counter Terrorism Financing, to coordinate national efforts and work closely with international partners.

Regulated exchanges

The Central Bank maintains a comprehensive list of authorised operators, ensuring consumers have alternative, regulated options for sending and receiving money.

The authority has advised the public to only deal with licensed financial institutions, warning that using unregulated operators puts individuals at risk of fraud and non-compliance with UAE law.

The Central Bank of the UAE has suspended the licence of Yas Takaful for failing to comply with regulatory requirements, the regulator announced on Monday.

In a statement, the Central Bank said Yas Takaful “remains liable for all rights and obligations arising from insurance contracts concluded before the suspension,” assuring policyholders that existing coverage remains valid.

The regulator added that it continues to strengthen oversight of the financial sector to ensure that all licensed institutions, their shareholders, and staff comply with UAE laws and regulations.

Founded in 2008 as Al Hilal Takaful and acquired in 2020 by Abu Dhabi-based Siraj Holding, Yas Takaful offers Sharia-compliant takaful insurance products, including health, life and general coverage. Takaful is an Islamic insurance model based on mutual protection, where participants contribute to a shared pool to cover potential losses.

Regulatory crackdown

The move comes as the Central Bank intensifies its enforcement actions against non-compliant insurers.

In July, the regulator revoked the licence of Al Khazna Insurance after it failed to meet licensing conditions following the suspension of its operations.

The UAE has also tightened its regulatory environment in recent years, with updated anti-money laundering and counter-terrorism financing laws introduced to safeguard the integrity of the country’s financial system.

Dubai Police have arrested a group of individuals involved in a sophisticated scam offering fake discounts of up to 70 per cent on traffic fines through fraudulent social media advertisements.

The operation was uncovered by the Anti-Fraud Centre within the General Department of Criminal Investigation. According to officials, the suspects lured victims by claiming they could settle traffic fines at a significantly reduced rate through unofficial channels.

However, investigations revealed a much more serious crime behind the scenes. The fraudsters were using stolen credit card information, acquired through cyber scams or purchased from illicit sources to pay the full amount of the victims’ traffic fines through legitimate payment portals. Once the system reflected that the fine was cleared, the fraudsters would collect half the amount in cash from the unsuspecting victim, falsely presenting it as a “discounted” payment.

“This is a dual crime involving both the misuse of stolen banking information and financial fraud,” said a spokesperson from Dubai Police. Authorities warned that individuals who knowingly engage in such illegal schemes could be considered accomplices and held legally accountable.

The public has been urged to avoid falling for such offers and to use only official government channels to settle any outstanding traffic fines. Any external or third-party claims to offer discounted payment services are illegal and punishable under UAE law.

Dubai Police also encouraged community members to remain vigilant and report suspicious activity via the “Police Eye” service on the Dubai Police app or by contacting the 901 call centre.