The Central Bank of the UAE (CBUAE) has imposed a financial penalty of Dhs5 million on a bank operating within the country for breaching anti-money laundering (AML) regulations. The sanction underscores the UAE’s firm commitment to maintaining financial transparency and preventing illegal financial activities.
Central Bank Violation of Anti-Money Laundering Laws
The fine was issued under articles 89 and 137 of Federal Decree Law No. (14) of 2018 regarding the Central Bank & Organisation of Financial Institutions and Activities. Additionally, the decision aligns with article 14 of Federal Decree Law No. (20) of 2018, which addresses Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations.
The Central Bank directed the bank to inform its overseas headquarters’ board of directors about the decision, further emphasizing the gravity of the violation.
Central Bank Upholding Transparency in the Banking Sector
The CBUAE, through its supervisory and regulatory authority, works to ensure that banks, their owners, and staff adhere to the UAE’s stringent laws and standards. These measures aim to safeguard the integrity and transparency of the banking industry, as well as the broader UAE financial system.
Commitment to Financial Integrity
The UAE has taken an active stance in combating money laundering and terrorism financing, reinforcing its legal framework to protect the financial ecosystem. This latest fine serves as a reminder of the country’s dedication to upholding international financial standards, ensuring that its banking sector remains secure and transparent for global investors.
The Central Bank of the UAE (CBUAE) has imposed a financial penalty of Dhs5 million on a bank operating within the country for breaching anti-money laundering (AML) regulations. The sanction underscores the UAE’s firm commitment to maintaining financial transparency and preventing illegal financial activities.
Violation of Anti-Money Laundering Laws
The fine was issued under articles 89 and 137 of Federal Decree Law No. (14) of 2018 regarding the Central Bank & Organisation of Financial Institutions and Activities. Additionally, the decision aligns with both article 14 of Federal Decree Law No. (20) of 2018, which specifically addresses Anti-Money Laundering, and Combating the Financing of Terrorism and Illegal Organisations. This further demonstrates the UAE’s commitment to tackling financial crimes on multiple fronts.
The Central Bank has directed the bank to inform its overseas headquarters’ board of directors about the decision, thereby emphasizing the gravity of the violation.
Upholding Transparency in the Banking Sector
The CBUAE, through its supervisory and regulatory authority, works to ensure that banks, their owners, and staff adhere to the UAE’s stringent laws and standards. These measures aim to safeguard the integrity and transparency of the banking industry, while also protecting the broader UAE financial system. Furthermore, by doing so, they reinforce the UAE’s commitment to maintaining a secure and transparent financial environment.
Commitment to Financial Integrity
The UAE has taken an active stance in combating money laundering and terrorism financing, thereby reinforcing its legal framework to protect the financial ecosystem. Consequently, this latest fine serves as a reminder of the country’s dedication to upholding international financial standards, and thus ensuring that its banking sector remains secure and transparent for global investors.
