In accordance with the Federal Decree Law Regarding the Central Bank and Organization of Financial Institutions and Activities, the Central Bank of the United Arab Emirates (CBUAE) fined a branch of a foreign bank with a UAE licence Dhs200,000,000 (two hundred million UAE Dirhams). The financial penalty is based on the findings of the CBUAE’s examinations, which showed that the foreign bank branch had serious, persistent shortcomings in its Sanctions Framework, Governance and Compliance Management, and Anti-money Laundering and Combating the Financing of Terrorism and Illegal Organisations.
In accordance with the provisions of the Federal Decree Law Regarding the Central Bank and Organization of Financial Institutions and Activities, and its amendments, the CBUAE also levied an individual penalty of Dhs300,000 on the Head of Compliance and Money Laundering Reporting Officer and Dhs500,000 on the Chief Executive Officer for failing to carry out the duties and functions of their positions.
A Fit and Proper re-evaluation of the Chief Executive Officer and the Chief Compliance Officer, as well as the implementation of a Mandatory Remediation Program under independent validation, were also mandated by the CBUAE. In order to protect the transparency and integrity of the banking industry and the UAE financial system, the CBUAE works to ensure that all banks, their authorised decision makers, and their employees abide by UAE laws as well as the rules and standards set by the CBUAE through its supervisory and regulatory mandates.
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