UAE fines foreign bank Dhs5m for money laundering breaches

Image credit: CBUAE

The UAE central bank said on Monday it fined a foreign bank operating in the country $1.4m (Dhs5m) for failing to sufficiently address money laundering and financing of terrorism and other related deficiencies.

The “financial sanction on a bank” was imposed in accordance with specific provisions outlined in the Federal Decree Law No. (14) of 2018 regarding the Central Bank & Organization of Financial Institutions and Activities, as well as the Federal Decree Law No. (20) of 2018 on Anti-money Laundering and Combating the Financing of Terrorism and Illegal Organizations.

The Central Bank of the UAE (CBUAE) didn’t disclose the name of the bank. The central bank ordered the bank to present its board with the regulator’s action.

Through its supervisory and regulatory mandates, the CBUAE ensures that all banks, their owners and staff abide by the UAE’s laws, regulations and standards to safeguard the transparency and integrity of the country’s banking sector and financial system.

CBUAE fined a local bank Dhs5.8m for failing to adequately address money laundering and financing of terrorism in August.

The UAE, home to the Abu Dhabi Global Market and Dubai International Financial Centre, was removed from the grey list of the global watchdog Financial Action Task Force (FATF) in February, capping a push by the authorities to clamp down on illicit financial flows.

The reforms that the UAE implemented to exit FATF’s grey list include increasing financial investigations and prosecutions, boosting international cooperation, and aligning virtual asset regulation with international standards.

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