The UAE Central Bank has fined two branches of foreign banks operating in the country a total of Dh18.1 million ($4.9 million) for breaching anti-money laundering regulations.
The regulator imposed a fine of Dh10.6 million on the first bank and Dh7.5 million on the second, it said in a statement on Wednesday, but did not name the lenders.
Penalties were imposed on the branches for “violations and failures” to comply with the anti-money laundering, combating the financing of terrorism and illegal organisations framework, and related regulations, the Central Bank statement added.
The fines were based on the findings of checks by the banking regulator, it said.
“The UAE Central Bank, through its supervisory and regulatory mandates, endeavours to ensure that all banks and their staff abide by the UAE laws, regulations and standards established by it to maintain transparency and integrity of the financial transactions and safeguard the UAE financial system,” the regulator said in the statement.
An exchange house was fined Dh200 million by the UAE Central Bank last week for breaching anti-money laundering regulations. A Dh500,000 fine was imposed on a branch manager, who was also banned from working in any licensed financial institutions in the UAE, the regulator said.
The Emirates has made significant progress in the fight against financial crime in recent years. Effective policies on money laundering and combating the financing of terrorism are vital to the integrity and stability of the international financial system and nations' economies, according to the International Monetary Fund.
Last year, the UAE announced an action plan to boost its fight against illicit financial activity, introducing the 2024-27 National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing.
The strategy has 11 goals outlining the “legislative and regulatory reforms the UAE is taking to prevent the impact of illegal activities on society”. It was developed by the General Secretariat of the National Committee using World Bank Group methodology to ensure it meets international standards.
In August, the government amended its laws against money laundering and the financing of terrorism and crime groups and formed a national committee on these crimes. In 2021, the government founded the Executive Office for Anti-Money Laundering and Counter-Terrorism Financing after passing related legislation in 2018.
