UAE Central Bank fines foreign bank branch Dh200 million for AML violations
The CBUAE imposed a Dh200 million penalty on an unnamed foreign bank branch for repeated anti-money laundering failures. The bank's CEO and compliance chief also face individual fines.
Foreign bank branch hit with Dh200 million penalty over money laundering failures
The Central Bank of the UAE (CBUAE) has fined a foreign bank branch Dh200 million for significant and repeated shortcomings in its anti-money laundering (AML) and counter-terrorism financing measures, governance framework, and sanctions compliance, menafn.com reports.
The penalty followed regulatory examinations that identified systemic deficiencies across the bank's compliance infrastructure. The CBUAE did not publicly name the bank.
Beyond the institutional fine, the regulator imposed individual penalties on two senior executives. The bank's chief executive officer was fined Dh500,000, while its head of compliance and money laundering reporting officer received a Dh300,000 fine — both for failing to fulfil their regulatory responsibilities.
The CBUAE also ordered the bank to implement a mandatory remediation programme, subject to independent validation. In addition, the central bank required a formal reassessment of the suitability of both the chief executive officer and the chief compliance officer for their respective roles.
The regulator stated it would continue to hold banks, senior decision-makers, and employees to UAE laws and regulatory standards in order to safeguard the integrity and transparency of the country's financial system.
Banque Misr under separate scrutiny
The enforcement action comes against a broader backdrop of heightened AML oversight in the UAE. In August, the CBUAE ordered an urgent examination of the UAE branches of Banque Misr — Egypt's state-owned lender — after US authorities proposed a special measure against the bank over money laundering concerns.
That move followed a US determination that Banque Misr was a financial institution operating outside the United States that posed a primary money laundering concern. The CBUAE confirmed it had reviewed the US notice and was assessing its implications, including options regarding the Egyptian bank's status in the UAE.
The regulator stressed that Banque Misr's UAE branches remained subject to local laws and regulations. It added that all banks licensed in the UAE must ensure their activities do not expose the country's financial system to reputational risks.
Source: Google News UAE — Courts & Fraud