The Central Bank imposes supervisory measures and financial penalties on a bank operating in the country

The Central Bank of the United Arab Emirates imposed administrative procedures, followed by a financial penalty, on a bank operating in the country, pursuant to the provisions of Article (14) of Federal Decree-Law No. (20) of 2018 regarding countering money laundering, combating terrorist financing and financing illegal organizations, and the relevant articles and decisions issued For the Council of Ministers and the Board of Directors of the Central Bank.  

The Central Bank has taken a two-step approach in the process of enforcement of administrative measures and financial sanction.

On August 4, 2021, the Central Bank imposed supervisory procedures on the bank, obligating it to appoint a consultant to take urgent necessary measures to address and correct deficiencies in the approved framework for compliance with the bank’s anti-money laundering and sanctions requirements.

The supervisory procedures are still ongoing, and the Central Bank will continue to coordinate with the Bank to complete the process of addressing and correcting the mentioned deficiencies. 

 On November 4, 2021, the Central Bank imposed a financial penalty of 19,500,000 dirhams, due to the bank's failure to achieve adequate levels of compliance with its anti-money laundering frameworks and penalties for an extended period of time. 

It should be noted that all banks operating in the UAE are obligated to achieve appropriate levels of compliance with the standards for combating money laundering and combating the financing of terrorism, and the Central Bank has given them sufficient time to address any deficiencies.

Therefore, in the event that the deficiencies are not corrected, then financial penalties will be imposed by the Central Bank, and it will continue to work with all financial institutions licensed in the country to achieve and maintain high levels of compliance with the requirements to combat money laundering and combat the financing of terrorism, and it will continue to impose more administrative penalties. and/or financial by law, in the event of non-compliance. 

The relevant bank has the right to file an appeal against the financial sanctions imposed

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