The Central Bank of the United Arab Emirates (CBUAE) has recently taken significant action by removing the entire board of directors of a local insurance company. In their place, a temporary committee of experts will assume control for a period of six months.
The CBUAE’s decision comes as an administrative sanction in accordance with Article 41 of the Federal Law No. (6) of 2007 on the Regulation of Insurance Operations. However, the specific name of the company and the reasons for the sanctions have not been disclosed in the statement released by the central bank on Tuesday.
This move follows a series of regulatory measures implemented by the CBUAE in recent times. Last week, the central bank imposed sanctions on eight banks operating within the country due to their non-compliance with rules linked to the Nationals Defaulted Debts Settlement Fund (NDDSF), as reported by the state news agency.
Earlier this year, the CBUAE had also issued guidelines aimed at licensed financial institutions, including banks, finance companies, exchange houses, insurance companies, agents, and brokers. These guidelines were introduced to combat money laundering and the financing of terrorism according to WAM.
