The Central Bank of the UAE has imposed penalties totaling 381 million dirhams as direct financial fines on several local financial institutions since the beginning of this year. These penalties stem from the results of inspection operations conducted by the bank during this timeframe.
The Central Bank’s regulatory and supervisory roles aim to ensure that all institutions under its jurisdiction, including their branches, management, and employees, comply with the current laws and regulations in the UAE, as well as the approved standards set by the bank. This is part of ongoing efforts to maintain transparency and integrity in financial transactions and to protect the nation’s financial system.
According to data from the Central Bank, the announced direct financial penalties followed 19 inspection campaigns that targeted 35 diverse financial institutions. This included 20 exchange companies, 11 banks, 3 insurance firms, and 1 finance company.
These inspections not only resulted in the imposition of fines but also led to various actions, including the revocation of licenses for exchange companies and the temporary suspension of services for certain banks and insurance companies involved in violations during these inspections.
As indicated by the penalty data, local exchange companies accounted for the majority of the imposed fines, representing 92% of the total fines, which amounts to approximately 350 million dirhams. Meanwhile, banks and two insurance companies contributed to around 8% of the total fines, approximately 31 million dirhams.
The majority of the fines, which constituted 98.1% of the total value, were the result of inspections that revealed shortcomings and violations related to non-compliance with anti-money laundering measures and counter-terrorism financing laws, along with associated regulations. The total penalties imposed for these issues reached 374 million dirhams, distributed among 23 institutions, including 3 banks and 20 exchange companies.
Additionally, deficiencies in implementing anti-money laundering measures were also responsible for a range of administrative penalties during inspections of companies working in insurance brokerage.
Further inspection campaigns led to penalties for non-compliance with financial reporting accuracy requirements, consumer protection regulations, and Islamic banking standards.