The Central Bank of the UAE (CBUAE) has imposed a financial penalty of AED3 million on a UAE-based bank. This action follows the bank’s failure to comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. The penalty was issued under Article 14 of Federal Decree Law No. (20) of 2018 and Article 137 of Decretal Federal Law No. (14) of 2018, which regulate financial activities in the UAE.
CBUAE Investigation Finds Regulatory Lapses
The CBUAE conducted an examination that uncovered major shortcomings. The bank did not follow specific instructions set out in UAE laws that aim to combat money laundering and terrorist financing. As a result, the Central Bank took enforcement action to uphold the law and protect the country’s financial system.
Moreover, the bank’s internal processes failed to meet the standards outlined by CBUAE, leading to this significant financial penalty. These findings reinforce the Central Bank’s intent to hold all licensed entities accountable.
Central Bank Reaffirms Its Regulatory Commitment
In its statement, the CBUAE stressed the importance of compliance. It continues to work closely with financial institutions to promote a culture of integrity, transparency, and lawful conduct.
Additionally, the Central Bank reminded all banks and their employees that they must follow the laws and regulations in place. These standards are crucial to safeguarding the UAE’s financial sector from misuse.
By imposing this fine, the CBUAE aims to encourage better practices and prevent future violations.
