News / UAE Central Bank Imposes Financial Sanctions on Two Foreign Banks

UAE Central Bank Imposes Financial Sanctions on Two Foreign Banks

UAE Central Bank imposes AED18.1 million fines on two branches of foreign banks for violating AML regulations and illegal organization frameworks.

03 min read

The Central Bank of the UAE (CBUAE) has imposed significant financial penalties on the two branches of foreign banks operating within the country and have breached the anti-money laundering (AML) laws of the state.

The total amount of fines is AED 18,100,000, in which the first bank received a penalty of AED 10,600,000, whereas the other one was fined AED 7,500,000.

The CBUAE had imposed financial sanctions on the violations and failures of Anti-Money Laundering, combating the Financing of Terrorism, and illegal organization laws.

The UAE Central Bank has continued its strict compliance to guarantee that banks and their employees are complying fully with UAE laws and regulations. CBUAE is simply aimed at maintaining transparency in financial transactions and protecting the financial system of the UAE.

This penalty is imposed pursuant to Article 14 of the Federal Decree Law No. (20) of 2018 regarding non-compliance with Anti-Money Laundering, Combating the Financing of Terror laws.

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It has been noticed that the legal authorities also imposed an AED200 million financial sanction on the exchange house earlier this month.

A fine was imposed on account of particular breaches regarding the counter-terrorism financing and AML rules.

On the other hand, five banks and two insurance companies got penalised for failing to comply with tax reporting regulations on 25 March.

The Central Bank sanctioned the entities for Dh2,621,000 on the account of non-compliance with tax reporting standards that were regulated through the Common Reporting Standard and FATCA guidelines.

As per the official press release of the UAE, recent financial sanctions imposed by the UAE Central Bank underscore the strong commitment of the state to updated financial regulation.

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