The UAE Central Bank revoked the licence of Al Khazna after the insurance company failed to meet the licensing requirements needed to conduct business during the period of suspension of its licence.
The move is in accordance with laws regulating insurance activities, the regulator said in a statement on Friday.
"The revocation results from the findings of examinations and follow ups conducted by the CBUAE, which revealed that Al Khazna failed to comply with requirements set out in the insurance law and other regulatory requirements imposed by the CBUAE, during the period of suspension of its licence," the central bank said.
Al Khazna Insurance Company, founded in 1996, has a diverse portfolio of businesses, including personal accident, property, medical, motor, financial liability, marine, energy and aviation, according to its website.
The central bank, through its supervisory and regulatory mandates, works to ensure that all insurance companies and insurance-related professions abide by the UAE laws, regulations and standards adopted by the regulator to "safeguard the transparency and integrity of the insurance sector and the UAE financial system", it added.
The banking regulator has been cracking down heavily on regulatory non-compliance. Earlier this week, it imposed a fine of Dh4.1 million ($1.1 million) on three exchange houses for failing to comply with the law on anti-money laundering and counter-terrorism financing (AML/CFT), as it continues its fight against illegal financial activity.
Earlier this month, it imposed a fine of Dh5.9 million on a branch of an unnamed foreign bank operating in the UAE for failing to comply with the AML/CFT framework and related regulations.
In June, the Central Bank imposed a Dh100 million fine on an exchange house for “significant failures” in its AML/CFT framework.
The UAE's efforts have been paying off. The EU last week voted to remove the UAE from its list of countries that pose a high risk for money laundering and terrorist financing amid a drive in the Emirates to boost its regulatory framework.
The European Parliament decided not to object to the European Commission’s proposal to amend the EU list of high-risk countries this week, enabling the removal of the UAE.
The Financial Action Task Force, the global body that combats money laundering and terrorism financing, removed the UAE from its “grey list” in February last year after significant progress on reforms. The Emirates was placed on the list in 2022.
