Central Bank of UAE revokes licence of Dubai-based brokerage firm

S&S Brokerage House failed to carry out its licensed activities for more than a year

The UAE has issued various regulations to fight money laundering and combat financing of terrorism. Sammy Dallal / The National

The Central Bank of the UAE revoked the licence of a Dubai-based brokerage firm for failing to carry one or more of its licensed activities for more than a year.

S&S Brokerage House offered a range of brokerage services such as money market and currency trading, as well as derivatives trading across a range of assets such as interest rate swaps, equity futures and commodities futures.

"S&S Brokerage House has ceased to carry on one or more of its licensed financial activities for a period exceeding one year. Accordingly, the CBUAE has decided to revoke their licence and strike their name off the register," the central bank said in a statement on Tuesday.

A time limit to appeal the decision expired on May 9, the regulator added.

The central bank has taken action against companies for breaching rules in recent months, most notably against exchange houses that fail to adequately meet anti-money laundering regulations.

Last month, the regulator imposed a penalty of Dh496,000 ($135,057) on an exchange house, which it did not name, after it found the company had a weak compliance framework to prevent money laundering and financing of terrorism. In determining the size of the fine, the central bank said it considered the exchange house's poor compliance history.

This is part of a broader strengthening of a framework of regulations governing the prevention of money-laundering and terrorism financing.

In February, the UAE set up a new Executive Office of Anti-Money Laundering and Counter Terrorism Financing, to work alongside multilateral bodies such as the Paris-based Financial Action Task Force. The office is linked to the Ministry of Foreign Affairs and International Co-operation.