UAE central bank fines local bank Dhs5.8m for AML lapses

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The UAE central bank said on Friday it fined a local bank $1.6m (Dhs5.8m) for failing to sufficiently address money laundering and financing of terrorism and other related deficiencies.

The regulator said the “financial sanction on a bank” was imposed under Article 14 of the Federal Decree Law No. (20) of 2018 on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) and Financing of Illegal Organisations.

The central bank imposed the hefty fine after an examination found deficiencies in the bank’s AML/CFT policies and procedures. The Central Bank of the UAE (CBUAE) didn’t disclose the name of the bank.

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.

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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