UAE Central Bank Imposes Dh18m Fines On Two Foreign Bank Branches
The Central Bank of the UAE (CBUAE) has imposed a total of Dh18.1 million in financial penalties on two UAE branches of foreign banks for violations related to anti-money laundering (AML) and counter-terrorism financing regulations.
The first bank was fined Dh10.6 million, while the second was issued a penalty of Dh7.5 million. The sanctions were issued under the law governing anti-money laundering and combating the financing of terrorism and illegal organisations in the UAE.
According to the CBUAE, the penalties follow examinations that revealed the two branches failed to comply with the UAE's AML legal framework and related regulatory requirements.
The move follows a week after an exchange house was fined Dh200 million. The investigation found major problems in the exchange house's anti-money laundering and terrorism financing controls. The branch manager was also fined Dh500,000 and banned from working in any licensed financial institution in the UAE.
The Central Bank stated that it is committed to ensuring that all financial institutions operating in the country adhere to applicable laws, regulations, and supervisory standards. It said this is essential for maintaining transparency in financial transactions and safeguarding the integrity of the UAE's financial system.
The identities of the sanctioned banks were not disclosed.
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