UAE Central Bank fines two branches of foreign banks
The financial sanctions were imposed based on the findings of examinations conducted by the CBUAE, 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.
The CBUAE, through its supervisory and regulatory mandates, endeavours to ensure that all banks and their staff, abide by the UAE laws, regulations and standards established by the CBUAE to maintain transparency and integrity of the financial transactions and safeguard the UAE financial system.
Earlier Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), and Taleh Kazimov, Governor of the Central Bank of the Republic of Azerbaijan (CBAR), signed a Memorandum of Understanding (MoU) aimed at strengthening cooperation and exchange of expertise and information in areas of shared interest within the financial sector.
Under the MoU, the two parties will exchange information on best supervisory, regulatory practices, licencing processes pertaining to banking and insurance businesses, and services related to payments and financial infrastructure systems.
In addition, they will deepen technical cooperation through training and the exchange of knowledge, including joint studies and research, as well as working visits.
WAM
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Gulf Today
2 days ago
- Gulf Today
India's Modi announces credit worth $565 million to Maldives
Indian Prime Minister Narendra Modi on Friday announced a $565-million line of credit to the Maldives during a visit to the Indian Ocean archipelago, as the two countries launched formal talks for a free-trade agreement. Modi is visiting the Maldives, known for its upmarket tourist resorts, to mark the 60th anniversary of its independence and diplomatic relations between the two countries. The announcement came during Modi's joint media statement with Maldives' President Mohamed Muizzu. The two-day visit is crucial to India's ambition to control the seas and shipping routes of the Indian Ocean in a race with its regional rival China. It also marks the further easing of diplomatic tensions between the two nations that followed the election of pro-China Muizzu in 2023. Regional powers India and China compete for influence in the archipelago nation, which is strategically located in the Indian Ocean. On Friday, Modi witnessed the exchange of agreements to cooperate in sectors such as fisheries, health, tourism and digital development. He also formally handed dozens of heavy vehicles to the Maldives' defense forces. 'India is Maldives' closest neighbor. Maldives holds an important place in both India's neighborhood- first policy and ocean vision,' Modi said. 'India is also proud to be Maldives' most trusted friend.' The line of credit will be used for 'infrastructure and development projects in line with the priorities of the people of the Maldives,' he said. 'India will continue to support Maldives in developing its defence capabilities. Peace, stability and prosperity in the Indian Ocean region is our common goal,' he added. During Muizzu's visit to India last October, India announced financial support to the cash-strapped Maldives in the form of a $100-million treasury bills rollover and the countries signed a $400-million currency swap agreement. Tensions between India and the Maldives grew since Muizzu, who favored closer ties with China, was elected in 2023 after defeating India-friendly incumbent Ibrahim Mohamed Solih. Leading up to the election, Muizzu had promised to expel Indian soldiers deployed in the Maldives to help with humanitarian assistance. Last year New Delhi replaced dozens of its soldiers in the Maldives with civilian experts. Measure by Modi to promote tourism in India's Lakshadweep archipelago, off the southwestern coast of the Indian mainland, also sparked anger from Maldivians, who saw it as a move to lure Indian tourists away from their country. Indian celebrities then called for a tourism boycott to the Maldives. The dispute deepened when Muizzu visited China ahead of India in January last year, a move seen by New Delhi as a snub. On his return, Muizzu spelled out plans to rid his tiny nation of dependence on India for health facilities, medicines and import of staples. Relations started to improve after Muizzu attended Modi's swearing-in ceremony for a third five-year term. Muizzu has toned down his anti-Indian rhetoric, and official contacts with New Delhi have intensified as concerns grew about Maldives' economy. India has long been a critical provider of development assistance to the Maldives. Meanwhile, the Maldives joined China's Belt and Road Initiative in 2013 to build ports and highways and expand trade as well as China's influence across Asia, Africa, and Europe. Modi will attend the Maldives' 60th independence anniversary from being a British protectorate on Saturday. Separately, the Reserve Bank of India has 'won the battle against inflation' but the war is ongoing as price stability remains the central goal, Governor Sanjay Malhotra said during a fireside chat at a Financial Express event on Friday. The RBI delivered a larger-than-expected 50 basis point rate cut at its June policy review but shifted its stance to 'neutral,' suggesting limited room for further easing. However, with retail inflation falling to a six-year low and likely to hit a record low in July, calls have grown for at least one more rate cut this year. Many analysts argue the sharp disinflation also points to weakening demand in the economy. Malhotra said monetary policy being forward looking, will place greater focus on the outlook for growth and inflation, rather than current levels when the policy panel meets on Aug. 6. The change in stance to 'neutral' did not mean a reversal from the easing of policy, he said. 'We have the flexibility to move up, down or pause. Yes, it does mean, the bar for further easing is higher than it would have been if it (stance) was accommodative,' he added. Monetary policy transmission has quickened due to rate cuts and will help in supporting economic growth as overall flow of funds to the industry and economy is improving, Malhotra said. Further monetary policy measures would depend on the requirement but the central bank has enough ammunition in its armory to use as and when required, he added. Agencies
Time Out Abu Dhabi
3 days ago
- Time Out Abu Dhabi
New banking rule coming to the UAE: Banks to switch from OTPs to in-app authentication
Banks in the United Arab Emirates are phasing out one-time passwords sent via texts and email as early as this week. The shift in digital banking security will begin on Friday July 25 and is being gradually rolled out by the Central Bank of the UAE. Instead of those OTP texts and emails you get sent prior to making a big purchase, you'll soon need to authenticate transactions with greater security via your bank's mobile app. OTPs are security codes that are valid for only one login attempt or transaction and are typically used for digital payments – including online shopping or QR-code purchases when you're dining out. The switch will not happen overnight and is expected to be fully in place by all banks March 2026. A CBUAE spokesperson explained to Gulf News that customers will complete online transactions easily by selecting the Authentication via App feature. The spokesperson said: 'As per the directives issued by the UAE Central Bank, the practice of receiving OTPs via SMS or email will be phased out. 'Customers can now complete online transactions easily by selecting the 'Authentication via App' feature in their bank's smart application.' The switch from OTPs to in-app authentication should provide more security for payments in the UAE. Banks are urging customers to update their apps and start favouring in-app authentication instead. With more payments being made digitally in Abu Dhabi, even when you're out and about, the switch means you'll need to make sure your phone is charged at all times to authenticate those big bills. Many of the best restaurants in Abu Dhabi will now ask you to pay after scanning a QR code. More things to do in Abu Dhabi Everything happening in Abu Dhabi in 2025 From new openings to big events, this is shaping up to be quite a year It's official: Abu Dhabi Comedy Season is returning for a second edition with some huge names Wow, look at this line-up Abu Dhabi's best restaurants: Everywhere you should eat at least once Your dinner inspo is sorted
Gulf Today
3 days ago
- Gulf Today
Bank investments in UAE cross Dhs774 billion by end of April 2025
Investments by banks operating in the UAE continued their upward trend, reaching Dhs774.3 billion by the end of April 2025. This marks a 16.2% annual increase compared to April 2024 and a 1.4% rise from March 2025. According to banking indicators released by the Central Bank of the UAE (CBUAE), investments in debt securities grew to Dhs352.4 billion by the end of April. Meanwhile, securities held to maturity totalled Dhs345.8 billion. Banks also invested Dhs19.3 billion in stocks and Dhs56.8 billion in other investment instruments. Total bank credit rose to over Dhs2.259 trillion, reflecting an annual growth of 9.5%. Of this, domestic credit accounted for approximately Dhs1.881 trillion, while foreign credit reached Dhs378.3 billion. Bank deposits exceeded Dhs2.965 trillion, comprising Dhs2.689 trillion in resident deposits, Dhs275.6 billion in non-resident deposits. A breakdown of investments by emirate noted that Abu Dhabi banks took the lead with Dhs 408.9 billion, followed by Dubai with Dhs 296 billion, and other emirates at Dhs69.5 billion. According to the Summary Report - Monetary & Banking Developments - April 2025 issued recently by the Central Bank of the UAE the total banking sector assets in the UAE, including bankers' acceptances, rose by 0.6 per cent month-on-month to exceed Dhs4.749 trillion at the end of April 2025, up from approximately Dhs4.719 trillion at the end of March. According to the report total bank credit increased by 0.9 per cent to surpass Dhs2.259 trillion at the end of April, compared to Dhs2.240 trillion at the end of March, driven by a rise of Dhs12.3 billion in domestic credit and Dhs7.1 billion in foreign credit. The growth in domestic credit was attributed to a 0.7 per cent increase in credit to the government sector, a 1.2 per cent increase to the public sector (government-related entities), and a 0.6 per cent increase to the private sector. Meanwhile, credit to non-banking financial institutions declined by 4.3 per cent. Total bank deposits also rose by 1 per cent month-on-month to exceed Dhs2.965 trillion at the end of April, compared to Dhs2.936 trillion at the end of March. This increase was driven by a 0.1 per cent rise in resident deposits, which reached over Dhs2.689 trillion, in addition to a 10.9 per cent increase in non-resident deposits to Dhs275.6 billion. Within resident deposits, government sector deposits rose by 0.9 per cent, and private sector deposits increased by 1.1 per cent. However, deposits from non-banking financial institutions fell by 9.2 per cent, and deposits from government-related entities declined by 6.5 per cent. The central bank also reported a 2.6 per cent increase in the monetary aggregate M1, which reached Dhs1.0119 trillion at the end of April, up from Dhs986.2 billion at the end of March. This was due to a Dhs26.9 billion increase in monetary deposits, which offset a Dhs1.2 billion decline in currency in circulation outside banks. Conversely, the M2 aggregate declined by 0.1 per cent to Dhs2.435 trillion at the end of April, compared to Dhs2.4377 trillion in March, driven by a Dhs27.8 billion fall in quasi-monetary deposits. The M3 aggregate increased by 0.2 per cent from Dhs2.8937 trillion in March to Dhs2.8982 trillion in April, mainly due to a Dhs6.6 billion increase in government deposits. Data also showed a 1.7 per cent decline in the monetary base, from Dhs833.1 billion in March to Dhs819 billion in April, attributed to a 2.5 per cent drop in issued currency and a 32.0 per cent fall in reserve accounts, despite a significant 159.8 per cent surge in current accounts and overnight deposits held by banks and other financial institutions at the central bank, as well as a 3.1 per cent rise in monetary bills and Islamic certificates of deposit. Meanwhile, the central bank's foreign assets increased to Dhs937.5 billion at the end of April, compared to Dhs935.2 billion at the end of March. As of the end of April, these foreign assets comprised Dhs403.2 billion in bank balances and deposits abroad, Dhs490.1 billion in foreign securities, and Dhs44.1 billion in other foreign assets. The central bank's balance sheet totalled Dhs972.3 billion, with liabilities and capital consisting of Dhs449.1 billion in current accounts and deposit accounts, Dhs279.9 billion in monetary bills and Islamic certificates of deposit, Dhs165.2 billion in currency notes and coins in circulation, Dhs33.2 billion in other liabilities, and Dhs45 billion in capital and reserves. On the asset side, the balance sheet comprised Dhs210.9 billion in cash and bank balances, Dhs208 billion in deposits, Dhs516.8 billion in investments, Dhs0.5 billion in loans and advances, and Dhs36.2 billion in other assets. Meanwhile, Commercial Bank of Dubai (CBD) has announced its financial results for the second quarter and first half of 2025, achieving a remarkable milestone of 20 consecutive quarters of profit growth. The Bank reported a net profit before tax of Dhs1.862 billion, representing a 16.7 per cent increase compared to the same half last year. WAM
