UAE Central Bank Suspends Foreign Insurance Company's Motor Business

The Central Bank of the UAE has suspended the motor insurance business of a foreign insurance company's branch (insurer).

The insurer remains liable for all rights and obligations arising from insurance contracts concluded before the suspension, the authority stated on Tuesday, July 29.

The legal action comes after the entity failed to comply with the solvency and guarantee requirements, specified in the law and prevailing regulations governing insurance companies in the UAE.

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This is not the first time the central bank has taken action against a foreign entity's branch.

The Central Bank of the UAE (CBUAE) has imposed a financial penalty of Dh5.9 million on a foreign bank branch operating within the country for failing to comply with anti-money laundering regulations.

On July 16, the authority imposed a financial sanction of Dh600,000 on a branch of a foreign bank in the UAE.

The apex bank did not reveal the name of the bank that has been penalised. The branch was reported to not be complying with the Market Conduct and Consumer Protection Regulations and Standards.

Meanwhile, on July 2, the authority announced it had imposed a financial penalty of Dh5.9 million on a foreign bank branch operating within the country for failing to comply with anti-money laundering regulations.

The name of the bank penalised by the apex bank was not disclosed.

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