The UAE Central Bank has revoked Gomti Exchange’s licence due to serious violations of anti-money laundering laws, removing its name from the official register. The action reinforces the UAE’s commitment to protecting its financial system from misuse.
Abu Dhabi: The Central Bank of the United Arab Emirates (CBUAE) has officially revoked the operating licence of Gomti Exchange, a licensed exchange house in the country. The decision was made in accordance with Article (137) of the Decretal Federal Law No. (14) of 2018 concerning the Central Bank and the Organisation of Financial Institutions and Activities.
This move comes after detailed examinations conducted by the Central Bank, which uncovered serious violations of regulations, particularly those related to anti-money laundering (AML), counter-terrorism financing (CTF), and compliance with international sanctions. Following these findings, Gomti Exchange’s name was also removed from the official register.
The revocation reflects the Central Bank’s commitment to protecting the financial system from misuse and ensuring that all financial institutions operating in the UAE comply with the highest standards of transparency, integrity, and legal responsibility.
Violations Highlighted by Examinations
The examinations revealed that Gomti Exchange had failed to fully comply with the UAE’s regulatory framework designed to prevent money laundering and the financing of terrorism. These frameworks are based on national laws and international standards set by organisations such as the Financial Action Task Force (FATF).
In particular, Gomti Exchange was found to be in violation of several key obligations, including failing to:
Implement effective internal AML and CTF policies and controls.
Monitor and report suspicious transactions.
Maintain proper due diligence and record-keeping.
Comply with sanctions imposed by UAE and international authorities.
Such failures pose serious risks to the stability and security of the UAE’s financial system, especially considering the country’s role as a major global business and finance hub.
UAE’s Zero Tolerance for Financial Misconduct
The UAE has adopted a zero-tolerance approach to financial misconduct and continues to take strict action against non-compliant entities. In recent years, the country has stepped up its enforcement of AML laws and regulations, including increased scrutiny of exchange houses, financial institutions, and non-banking entities.
The Central Bank plays a leading role in this effort by regularly conducting inspections, issuing fines, and revoking licences when necessary. These measures aim to prevent the UAE financial system from being exploited for criminal activities such as money laundering, terrorism financing, and dealings with illegal organisations.
A Message to the Financial Sector
The revocation of Gomti Exchange’s licence sends a clear warning to other exchange houses and financial service providers operating in the UAE. Institutions must fully understand and adhere to all applicable laws and regulations, including maintaining robust internal compliance frameworks.
The Central Bank emphasized that every exchange house, including its management and staff, is expected to meet the highest standards of ethical and legal conduct. Firms that fail to do so may face serious consequences, ranging from financial penalties to suspension or permanent closure.
Role of the Central Bank in Financial Oversight
The Central Bank of the UAE is responsible for regulating and supervising licensed financial institutions in the country. Its core objectives include:
Ensuring the stability and integrity of the financial system.
Enhancing confidence in the UAE’s financial markets.
Protecting the financial system against abuse and misuse.
Promoting a safe, transparent, and competitive financial environment.
In line with its mandate, the Central Bank continues to monitor licensed institutions closely and take corrective measures when violations are detected.
