By PAUL O’DONOGHUE, Senior Correspondent
THE Central Bank of the UAE (CBUAE) has hit two foreign bank branches with Dh18.1 million ($5 million) in sanctions for breaching anti-money laundering and counter-terrorism financing laws.
One branch received a Dh10.6 million penalty. The other was fined Dh7.5 million. The CBUAE did not name either institution.
Officials issued the fines under the UAE’s federal law on anti-money laundering and the financing of terrorism and illegal organisations.
In a statement, the central bank said: “The CBUAE, through its supervisory and regulatory mandates, endeavors to ensure that all banks and their staff abide by the UAE laws, regulations and standards established by the CBUAE to maintain transparency and integrity of the financial transactions and safeguard the UAE financial system.”
UAE AML crackdown
This latest action follows another AML penalty handed out last week. The CBUAE fined an exchange house a landmark Dh200 million for serious failings in its AML and terrorism financing controls. Authorities also fined the branch manager Dh500,000 and banned him from working in any licensed financial institution in the UAE.
The central bank has increased enforcement in recent years. These efforts aim to strengthen the UAE’s financial system.
In 2022, the Financial Action Task Force (FATF) placed the UAE on its grey list. The move followed concerns about the effectiveness of the country’s AML regime. The UAE was removed in 2024 after strengthening its AML standards.
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