The Exchange Houses sector is regulated by the Regulations and the Standards issued by the CBUAE. For more details and information on AML/CFT compliance, please refer to Chapter 16 of the Standards for the Regulations Regarding Licensing and Monitoring for Exchange Business, version 1.20 of November 2021 amending Version 1.10 of February 2018. LEH are supervised by the CBUAE, who may examine the activities of the LEH at any time it deems appropriate to ensure proper compliance with their statutory obligations under the legal and regulatory framework in the UAE, or impose supervisory action or administrative and financial sanctions for violations. Similar to its all LFIs, the CBUAE applies the principle of proportionality in its supervision and enforcement process, whereby small LEH may demonstrate to the CBUAE that the objectives of the regulatory requirements are met without necessarily addressing all the specifics cited in the legal and regulatory framework in the UAE.