The Central Bank of the UAE (CBUAE) has levied substantial penalties against two branches of foreign banks operating within the country for violations related to anti-money laundering (AML) regulations.
The collective fine of AED 18.1 million includes AED 10.6 million imposed on the first bank and AED 7.5 million on the second. These sanctions followed inspections conducted by the CBUAE, which uncovered non-compliance with the Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations framework, along with related regulatory requirements.
The Central Bank reaffirmed its commitment to upholding transparency and integrity within the UAE’s financial system. It emphasized that all financial institutions and their personnel must strictly adhere to the nation’s laws, CBUAE-issued regulations, and international standards.
In a separate case earlier this month, the Central Bank fined an exchange house AED 200 million for significant AML and counter-terrorism financing breaches. Additionally, a branch manager was fined AED 500,000 and permanently banned from holding any future roles in licensed financial institutions across the UAE.
Further enforcement was seen on March 25, when five banks and two insurance companies were penalised for failing to comply with tax reporting obligations. A total fine of AED 2.62 million was imposed due to lapses in procedures required under the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) guidelines.
In August 2024, the UAE introduced a federal decree amending key provisions of its AML law. The amendments included the formation of dedicated oversight committees, aiming to strengthen the country’s legislative and regulatory framework in line with international best practices.