UAE securities regulator fines company $1.36mn for money laundering violations

The Securities and Commodities Authority (SCA) has imposed a record fine of AED 5 million on a licensed company and referred the matter to the Public Prosecution for violations of anti-money laundering laws and counter-terrorism financing regulations.

The enforcement action represents a major move by the UAE’s financial regulator to maintain market integrity and enforce regulatory compliance within the country’s financial sector, the Emirates News Agency (WAM) said in a statement.

An investigation revealed that the sanctioned entity collaborated with an overseas company to engage in practices that targeted investors within the UAE.

The company falsely suggested that the foreign partner was licensed by the Authority, with investigators determining the intent was to misappropriate client funds.

The violations confirmed by the Authority included breaches of anti-money laundering (AML) laws, counter-terrorism financing regulations, and measures related to the funding of organisations engaged in unlawful activities.

The SCA stated that the referral of the case to judicial authorities demonstrates “the Authority’s unwavering commitment to transparency and to upholding the highest standards of regulatory compliance.”

By escalating the case to the courts, the regulator said it had “reaffirmed its commitment to transparency, deterrence, and regulatory compliance, in line with international best practices.”

The Authority emphasised its approach to supervision, stating it maintained “strategic focus on oversight, risk-based supervision, and compliance enforcement, all of which support the UAE’s positioning as a trusted and competitive financial hub.”

The case marks the latest in a series of enforcement actions by the SCA. Earlier this year, the Authority announced financial penalties totalling AED 1.15 million against companies since the beginning of January 2025, demonstrating continued regulatory scrutiny of the UAE’s financial services sector.

The AED 5 million penalty represents the largest fine imposed by the SCA for such violations, underlining the regulator’s commitment to deterring financial misconduct and protecting investors in the UAE market.