UAE Acts Against Sundus Exchange in a Significant Move Against Financial Malfeasances

Nairobi, Kenya (Horn Observer + Kaab TV) – In a decisive move, the Central Bank of the United Arab Emirates (CBUAE) has taken firm action against Sundus Exchange. The bank revoked its license, struck the firm off its registry, and levied a substantial financial penalty of AED 10 million, roughly equivalent to USD 2.72 million. This stern measure was prompted by serious violations related to anti-money laundering (AML) and counter-terrorism financing regulations.

The CBUAE’s decision stemmed from extensive investigations revealing considerable non-compliance with laws aimed at combating money laundering and terrorist financing. “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 detailed.

A Closer Look at Sundus Exchange

What is it about Sundus Exchange that captured such scrutiny? This firm is linked to the Haleel Electronics Group, based in Somalia, with a sprawling network of subsidiaries spread across Kenya, Uganda, Cyprus, and Dubai. This connection itself is no small detail.

In March 2024, the group’s operations fell under international scrutiny when the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 16 entities and individuals. They were allegedly tied to financing al-Shabaab, a notorious terrorist outfit aligned with al-Qaeda.

OFAC pointed out that this network facilitated fund laundering for al-Shabaab, empowering its operations across the expansive East African region. Among those branded was Haleel Commodities L.L.C., also recognized as the Haleel Group, headquartered strategically in Dubai.

Adding to the intrigue, the subsidiaries named included Haleel Finance LTD, Haleel Holdings, and Haleel LTD in Cyprus, alongside Haleel Commodities Limited in Kenya, Haleel Commodities LTD in Uganda, and of course, Haleel Electronics in Somalia.

These firms are far from inconsequential—they’ve been identified as critical financial conduits for al-Shabaab, enabling the generation and laundering of over $100 million annually. Such funds are instrumental in advancing terrorist operations and supporting al-Qaeda-linked factions globally.

A History of Suspicion

This isn’t Sundus Exchange’s first brush with allegations of illicit financial conduct. Back in 2018, Ugandan authorities froze bank accounts connected to Sundus Exchange and a related forex bureau in Kampala, on suspicions of money laundering and terror financing. At that time, Kampala Associated Advocates firmly denied these allegations.

Today’s revocation of Sundus Exchange’s license by the UAE signifies a proactive step towards addressing long-standing international criticism regarding the nation’s somewhat lax financial oversight.

Photo: Al-Shabaab remains one of the deadliest terrorist groups in Africa.

Brian E. Nelson, the U.S. Treasury’s Under Secretary for Terrorism and Financial Intelligence, highlighted the broader global efforts being made 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.”

The Ongoing Threat

Al-Shabaab continues to be a significant threat on the African continent. Since 2007, their relentless attacks have claimed the lives of over 3,500 African Union peacekeepers, mainly from Uganda and Burundi, not to mention countless Somali civilians. The group’s actions have not only destabilized the region but have also severely undermined governance structures and escalated insecurity through persistent violence and extortion tactics.

In reflecting on this narrative, one might ponder the broader implications of financial networks intertwined with terrorist activities. How does one balance the freedom of enterprise with stringent regulations to ensure global security? The revocation of Sundus Exchange’s license brings these questions to the forefront, compelling us to consider the vital interplay between vigilance and commerce in a world where the lines are often intentionally blurred.