The UAE Central Bank has revoked the licence of Malik Exchange, an Abu Dhabi-based remittance company, for failing to comply with anti-money laundering regulations and counter-terrorism financing, as it continues its fight against illegal financial activity.
The regulator struck the company’s name off the register and imposed a financial sanction of Dh2 million ($544,588), it said on Wednesday.
The sanctions were imposed after investigations revealed the exchange house failed to comply with anti-money laundering regulations and counter-terrorism financing policies and procedures, the Central Bank said.
The regulator, through its supervisory and regulatory mandates, works “to ensure that all exchange houses, their owners, and staff abide by the UAE laws, regulations and standards … to maintain transparency and integrity of financial transactions and safeguard the UAE financial system”, it added.
Malik Exchange, which was established in 1996, provided remittances, payroll, payment and foreign currency exchange services.
The latest action comes as the UAE regulator cracks down heavily on regulatory non-compliance. It has imposed financial sanctions on at least four exchange houses in the Emirates since May.
It levied a fine of Dh4.1 million on three exchange houses in July for failing to comply with the anti-money laundering regulations and counter-terrorism financing laws.
In June, the Central Bank imposed a Dh100 million fine on an exchange house and issued a separate fine of Dh3.5 million on another money exchange company for “significant failures” in their anti-money laundering regulations and counter-terrorism financing framework.
In May, an exchange house was fined Dh200 million by the Central Bank for breaching anti-money laundering regulations.
Similarly, in 2024, the Central Bank imposed a financial penalty on 20 exchange houses, levied a fine, closed two branches and suspended the activity of one exchange company for three years, and revoked the licence of another money transfer firm for non-compliance with anti-money laundering regulations and counter-terrorism financing rules.
The regulator also imposed a financial penalty on six banks and five insurance-related companies for breaking UAE anti-money laundering rules last year.
Overall, the UAE imposed fines of more than Dh42 million on private sector entities during the first half of 2025 for not complying with anti-money laundering regulations, state news agency Wam quoted the Ministry of Economy of Tourism as saying last month.
A total of 1,063 breaches were discovered in the six months to the end of June across four categories, it said.
Last year, the government amended its laws on anti-money laundering, and the financing of terrorism and illegal organisations to ensure better regulatory oversight.
The EU last month voted to remove the UAE from its list of countries that pose a high risk for money laundering and terrorist financing.
