The Central Bank of the United Arab Emirates (CBUAE) has revoked the license of Sundus Exchange, removed the firm from its registry, and imposed a financial penalty of AED 10 million (approx. USD 2.72 million) over violations related to anti-money laundering (AML) and terror financing regulations.
In a statement, the CBUAE said the decision followed extensive investigations that uncovered serious failures in compliance with laws related to Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations (AML/CFT).
“The revocation and financial sanction were imposed based on the results of examinations conducted by the CBUAE, which revealed failures and violations of the AML/CFT framework and related regulations,” the statement read.
What do we know about Sundus Exchange?
Sundus Exchange has been linked to the Somalia-based Haleel Electronics Group and its vast network of subsidiaries in Kenya, Uganda, Cyprus, and Dubai.
The group came under international scrutiny in March 2024, when the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 16 entities and individuals for allegedly financing al-Shabaab, a terrorist group affiliated with al-Qaeda.
According to OFAC, this network facilitates the laundering and movement of funds for al-Shabaab, enabling its operations across East Africa.
Among the designated companies was Haleel Commodities L.L.C., also known as Haleel Group, headquartered in Dubai.
The U.S. Treasury noted that the Haleel Group’s subsidiaries include: Haleel Finance LTD, Haleel Holdings, and Haleel LTD in Cyprus, Haleel Commodities Limited in Kenya, Haleel Commodities LTD in Uganda, and Haleel Electronics in Somalia.
These companies were identified as financial lifelines for al-Shabaab, which relies on these networks to generate and launder over $100 million annually—funds used to finance terrorist operations and support other al-Qaeda-linked groups worldwide.
This is not the first time Sundus Exchange has been linked to illicit financial activities.
In 2018, Ugandan authorities froze bank accounts associated with Sundus Exchange and a related forex bureau in Kampala due to suspected involvement in money laundering and terrorism financing.
At the time, Kampala Associated Advocates, the firm’s legal representatives, denied the allegations.
The revocation of Sundus Exchange’s license marks a significant step by the UAE in responding to long-standing international criticism over lax financial oversight and the country’s vulnerability to illicit money flows.
The U.S. Treasury’s Under Secretary for Terrorism and Financial Intelligence, Brian E. Nelson, underscored the global effort to dismantle such networks:
“Today’s action is part of a multifaceted effort by Treasury to support the Somali government’s economic offensive against al-Shabaab—one of three pillars in their campaign to degrade this deadly terrorist group.”
Al-Shabaab remains one of the deadliest terrorist groups in Africa.
Since 2007, its attacks have killed over 3,500 African Union peacekeepers, mostly from Uganda and Burundi, and thousands of Somali civilians.
The group continues to destabilize the region, undermining governance and fueling insecurity through violence and extortion.
Horn Observer
