UAE regulator imposes record $1.36 million fine over money laundering breaches

The UAE’s Securities and Commodities Authority (SCA) has fined a licensed company AED 5 million and referred it to the Public Prosecution for violating anti-money laundering (AML) and counter-terrorism financing laws.

According to state news agency WAM, the penalty—the largest ever issued by the Authority for such offenses—follows an investigation into the company’s collaboration with a foreign firm to target local investors.

The SCA said the company misrepresented the foreign partner as being licensed by the Authority, with the intention of misappropriating client funds. The investigation confirmed breaches of AML laws, counter-terrorism financing regulations, and rules related to funding unlawful organizations.

The case has been referred to judicial authorities, with the SCA emphasizing that the move reflects its focus on transparency and strong regulatory enforcement.

The regulator said it is committed to risk-based supervision and holding firms accountable in line with global standards, as part of broader efforts to maintain the UAE’s reputation as a trusted financial center.

This latest enforcement action adds to a series of penalties issued this year. Since January 2025, the SCA has announced financial penalties totaling AED 1.15 million across multiple cases in the financial services sector.