The Central Bank of the UAE (CBUAE) has levied a financial penalty OF $327,000 on an insurance company operating within the country.
The penalty is in accordance with Article 14 of the Federal Decree Law No. (20) of 2018, addressing Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations.
This financial penalty arises from the outcomes of a routine examination conducted by the Central Bank, revealing deficiencies in the insurance company’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) policies and procedures.
As a consequence, the Central Bank has imposed a fine of AED 1.2M ($327,000) on the insurance company, according to Arabian Business.
Through its supervisory and regulatory responsibilities, the Central Bank strives to ensure compliance with the country’s laws, regulations, and standards by insurance companies, their owners, and staff. This is done to uphold the transparency and integrity of the insurance sector and the national financial system.