UAE Central Bank Imposes Over AED 370 Million in Fines on Banks, Exchange Firms

The penalties underscore the regulator’s ongoing efforts to enforce compliance with anti-money laundering (AML), counter-terrorism financing (CFT), and broader financial risk management frameworks.

According to the Central Bank, the fines reflect a series of violations, ranging from weak internal controls and insufficient due diligence practices to failure in reporting suspicious transactions. The regulator emphasized that maintaining strong governance and compliance systems is non-negotiable in a financial hub like the UAE, which continues to attract global capital and cross-border transactions.

The move highlights the UAE’s determination to strengthen its reputation as a transparent and resilient financial market, aligned with international best practices.

 Over the past few years, the country has tightened its oversight of the financial sector, particularly after being placed under increased monitoring by global watchdogs. These actions aim to build investor confidence and ensure that the UAE remains an attractive, secure environment for both domestic and international business.

For banks, exchange firms, and insurers, the fines serve as a wake-up call to reassess compliance mechanisms, invest in better monitoring technology, and foster a culture of accountability. The message is clear: institutions that fail to meet regulatory expectations will face significant financial and reputational consequences.

Part of a Broader Trend

This isn't the first wave of enforcement in 2025. Earlier in the year, the UAE Central Bank had imposed AED 339 million in fines as part of an intense AML/CFT crackdown. Highlights include:

AED 100 million and AED 200 million fines on exchange houses

AED 18.1 million in penalties against two foreign banking branches

Another AED 12.3 million fine across six exchange houses

A previously imposed AED 3.5 million fine on one exchange house

Additionally, in March and May, five banks and two insurers were fined AED 2.62 million for failing to comply with CRS and FATCA tax-reporting requirements

Why It Matters

Reinforcing the UAE’s credibility:

These enforcement measures reinforce the UAE’s aspirations to be seen as a robust, transparent global financial hub. They also helped contribute to the country being removed from the EU's “high-risk” list for money laundering and terrorism financing

Setting compliance expectations for institutions and individuals:

By penalizing not only corporations but individual branch managers, the Central Bank has made clear that accountability runs deep.As banking analyst Ahmed Youssef put it, this regulatory clarity is a win for transparency and systemic strength. Meanwhile, Amjad Nasr characterizes the approach as “proactive supervision” — not only punitive, but aimed at compelling institutional upgrades

Global stakes are high:

Failure to maintain strong AML/CFT mechanisms could threaten the UAE’s standing on international watchlists, potentially choking off cross-border operations and deterring investment.