The central bank of the UAE has levied significant fines on two foreign bank branches operating within the country. These financial penalties were imposed in alignment with the Emirates’ anti-money laundering regulations.
The total fines amount to Dh18,100,000, with one bank being fined Dh10,600,000 and the other receiving a Dh7,500,000 penalty.
These sanctions followed investigations by the Central Bank of the UAE (CBUAE) that uncovered non-compliance with the framework addressing Anti-Money Laundering and Combatting the Financing of Terrorism and Illegal Organizations, along with relevant regulations.
The regulatory authority aims to ensure that all financial institutions and their employees adhere to UAE laws and CBUAE standards, promoting financial transaction transparency and protecting the integrity of the financial system.
Earlier this month, a different financial entity faced a Dh200 million fine due to serious violations of anti-money laundering (AML) and counter-terrorism financing rules. Additionally, a branch manager was penalized Dh500,000 and permanently disqualified from any position within licensed financial institutions in the UAE.
Furthermore, on March 25, the Central Bank imposed fines totaling Dh2,621,000 on five banks and two insurance companies for their failure to comply with tax regulations. This punishment was due to deficiencies in reporting required by the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA).
In August 2024, a federal decree was issued by the UAE, modifying certain aspects of the anti-money laundering and counter-terrorism financing law. This amendment introduced committees tasked with overseeing compliance, thereby strengthening the country’s legal and regulatory framework to align with international standards.