The Central Bank of the UAE fined a foreign bank branch Dh200 million ($54,458,815) for violating anti-money laundering laws.
The CBUAE also penalised the chief executive Dh500,000 and the head of compliance and money laundering reporting officer Dh300,000 under the Federal Decree Law Regarding the Central Bank and Organisation of Financial Institutions and Activities and its amendments, for not fulfilling their responsibilities.
The penalty follows investigations by the Central Bank, which found the branch had significant and repeated failures in anti-money laundering, combating the financing of terrorism and illegal organisations, governance, compliance management and sanctions frameworks.
The CBUAE ordered the bank to carry out a mandatory corrective action plan, have it independently reviewed and reassess whether its chief executive and chief compliance officers were suitable for their roles.
The apex bank imposed the penalty under the Federal Decree Law Regarding the Central Bank and Organisation of Financial Institutions and Activities.
Through its regulatory mandates, the CBUAE oversees banks and their staff to make sure they follow UAE laws and CBUAE rules, helping keep the banking sector and financial system transparent and trustworthy.
