Two insurance companies, Seagull Insurance Services and Al Shorafa Insurance Services, had their registrations cancelled by the UAE Central Bank. The names of these insurers were removed from the broker registry as part of the Central Bank’s crackdown on regulatory violations.
The banking regulator announced the decision on Wednesday, stating that it was in compliance with the relevant regulations, according to The National News. The authorities did not disclose the specific nature of the offences committed by the two insurance brokers.
“Through its supervisory and regulatory mandates, the Central Bank works to ensure that all insurance companies and professions related to insurance companies comply with the UAE laws and regulations to safeguard the transparency and integrity of the insurance industry and the UAE financial system,” the Central Bank said.
Measures Central Banks have taken
The UAE Central Bank is taking stringent measures to address regulatory violations, particularly concerning money laundering and terrorism financing.
In December, regulatory authorities issued new guidelines to licensed financial institutions in the insurance sector. The purpose of these guidelines is to instruct institutions to enforce their anti-money laundering and counter-terrorism financing obligations. Specifically, the guidelines focus on addressing risks related to life insurance and investment-related insurance products. They provide insurers with guidance on the identification, assessment, management, and mitigation of these risks.
In May, the Central Bank took action in response to a situation. They removed the board of directors of an insurance company and appointed a temporary committee of experts for a six-month period. The regulator has been proactive in launching initiatives aimed at enhancing regulatory oversight in the financial sector. As part of these efforts, they have introduced an enhanced framework for monitoring banks’ exposure to the property sector. Additionally, guidelines have been provided to assist licensed exchange houses in combating money laundering and terrorism financing.
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