UAE Central Bank Imposes Over Dh18 Million Fine Against 2 Foreign Bank Branches

The UAE's central bank has imposed a hefty penalty against two branches of foreign banks operating inside the country. These financial sanctions were issued in accordance with the anti-money laundering laws of the Emirates.

The two banks were hit with a collective fine of Dh18,100,000 with the first bank getting a Dh10,600,000 penalty and the second getting a Dh7,500,000 sanction.

These penalties were imposed after the Central Bank of the UAE (CBUAE) conducted examinations which revealed violations and failures to comply with the Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations framework, and related regulations.

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The authority works to ensure that all banks and their staff in the country abide by UAE's law, regulations and standards established by the CBUAE to maintain transparency of financial transactions and safeguard the country's financial system.

In an earlier incident this month, the authority slapped a Dh200 million fine on an exchange house after uncovering major violations of anti-money laundering (AML) and counter-terrorism financing regulations. A branch manager was also fined Dh500,000 and permanently barred from holding any role at licensed financial institutions in the country.

Meanwhile on March 25, five banks and two insurance companies operating in the UAE were penalised for non-compliance with tax rules . Financial sanctions totalling Dh2,621,000 were imposed by the Central Bank on the banks and insurance companies for failing to report procedures required by the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) guidelines.

On August of 2024, the UAE issued a federal decree amending certain provisions of the Anti-Money Laundering and Combating the Financing of Terrorism law by establishing committees to overlook the same. The new move is aimed at developing the legislative and legal structure of the nation to ensure compliance with international standards.

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