The central bank has imposed direct financial penalties totaling 340 million dirhams on several local financial institutions as part of a series of administrative actions stemming from inspections conducted since the start of 2025.
The central bank, through its regulatory and oversight functions, aims to ensure that all institutions under its supervision, including their branches, management, and employees, adhere to the current laws and regulations in the UAE, as well as the standards set by the bank itself. This is part of its efforts to maintain transparency and integrity in financial transactions to safeguard the nation’s financial system.
According to data from the central bank, the announced financial penalties resulted from seven inspection campaigns that targeted 19 different financial institutions, which included ten exchange companies, seven banks, and two insurance firms. Another campaign involved a variety of measures, including administrative sanctions and warnings issued to five insurance brokerage companies.
As per the penalties data released by the central bank, local exchange companies received the majority of the fines, which accounted for over 91% of the total penalties, amounting to approximately 319.3 million dirhams, across five inspection campaigns. On the other hand, the banks subjected to fines, along with the two insurance companies, accounted for 9% of the total fines, equating to around 20.7 million dirhams.
In terms of reasons for these penalties, a significant portion, 99.2%, was attributed to inspections revealing failures and violations related to compliance with anti-money laundering and counter-terrorism financing regulations, as well as laws pertaining to the financing of illegal organizations. The total fines imposed for these issues amounted to 337.4 million dirhams, affecting 12 institutions, which included two banks and ten exchange companies.