The Central Bank of the UAE has imposed sanctions on a bank, which include a six-month ban on accepting new clients for its Islamic banking services and a fine of 3.5 million dirhams. This action was taken under Article 137 of the Federal Law Decree No. 14 of 2018 concerning the Central Bank and the regulation of financial institutions and activities.
These penalties were based on findings from the Central Bank’s regulatory Sharia compliance inspections, which revealed that the bank had failed to adhere to the requirements related to Islamic banking services as well as the stipulations outlined in the Federal Law Decree No. 14 of 2018.
The Central Bank is committed to ensuring that all banks and their staff comply with the laws and regulations in the UAE, as well as the systems and standards it has approved. This is part of its broader mission to maintain transparency and integrity in the banking sector while protecting the financial system in the country.