UAE Central Bank Levies Financial Penalties Totaling Dh18 Million on Two Overseas Bank Branches
The Central Bank of the United Arab Emirates (CBUAE) has imposed hefty fines totaling Dh18.1 million on two foreign bank branches for neglecting anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
Following thorough examinations, the first bank was hit with a penalty of Dh10.6 million, while the second was handed a fine of Dh7.5 million. The sanctions were issued under the UAE's law that governs AML and CTF, highlighting the country's staunch commitment to enforcing these regulations.
The violations, as per the CBUAE, stemmed from the banks' failure to comply with the UAE's AML legal framework and related regulatory requirements.
This move comes a week after an exchange house was fined an astronomical Dh200 million for substantial problems in its AML and CTF controls, with its branch manager receiving a penalty of Dh500,000 and a ban from holding any position in a licensed financial institution in the UAE.
The CBUAE emphasizes the necessity for all financial institutions in the country to abide by applicable laws, regulations, and supervisory standards. Ensuring transparency in financial transactions and preserving the integrity of the UAE's financial system are paramount in this regard.
The identities of the sanctioned banks remain undisclosed. The combined Dh18.1 million fine on the foreign bank branches represents one of the most substantial financial penalties directly imposed on foreign banks within the UAE for AML/CTF non-compliance.
The UAE's stringent regulatory scrutiny extends beyond foreign banks, with exchange houses having faced equally significant fines. One exchange house was fined as high as Dh100 million in a separate case due to major AML breaches.
The enforcement actions underscore the UAE's unwavering stance on enforcing AML and CTF regulations, with penalties extending to foreign banks and other financial entities found non-compliant.
The fines imposed on the two foreign bank branches highlight the significance of adhering to AML and CTF regulations in the business and finance sector. The Central Bank of the United Arab Emirates (CBUAE) enforces these regulations firmly, as evidenced by the substantial penalties handed out to various financial institutions, including foreign banks, for non-compliance.
