Imposing financial penalties on 6 banks for failures in “compliance”

12.42 billion dirhams, the “Central” balance of gold at the end of April 2022

The central bank's gold balance has witnessed a remarkable growth over the past years.

Emirates today

The balance of the UAE Central Bank of gold reached 12.42 billion dirhams at the end of last April, an increase on an annual basis of 7.5%, or 860 million dirhams, compared to 11.56 billion dirhams in April 2021.

Data of the statistical bulletin issued by the Central Bank showed that the Central Bank’s balance of the yellow metal increased by 4.3%, or the equivalent of 507 million dirhams, during the first four months of this year, compared to 11.913 billion dirhams at the end of December 2021.

It is noteworthy that the Central Bank's gold balance has witnessed a remarkable growth during the past years, rising from 8.961 billion dirhams at the end of 2020, 4,044 billion dirhams at the end of 2019, and 1.134 billion dirhams at the end of 2018.

Gold is among the various assets owned by the Central Bank, including liquid funds, certificates of deposit, and held-to-maturity securities.

financial penalties

In addition, the Central Bank of the Emirates imposed financial penalties on six banks operating in the country, in accordance with Cabinet Resolution No. 9 of 2021, regarding the implementation of some provisions of the multilateral administrative agreement for the automatic exchange of information, and the “joint disclosure” standard of the Organization for Economic Cooperation and Development.

The bank said in a statement that the "joint disclosure" standard is a global approach for the automatic exchange of financial accounts and tax-related information with financial regulatory organizations around the world through secure channels.

He explained that the standard specifies the information to be exchanged, the types of financial institutions that are required to report, the different types of financial accounts, and account holders included in this scope, in addition to the common due diligence procedures that financial institutions must follow.

Financial sanctions take into account failures of banks to achieve appropriate levels of compliance in terms of required due diligence, reporting procedures and standards.

The Central Bank pointed out that it allowed all banks operating in the country, enough time to apply the "joint disclosure" standard.

The Central Bank affirmed that it is committed to complying with all regulations aimed at strengthening the country's financial and banking system, which would support the UAE's commitment to global initiatives to enhance the integrity and transparency of tax systems, and combat tax evasion.

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