The Central Bank imposes financial penalties on 6 banks operating in the country

The Central Bank of the United Arab Emirates imposed financial penalties on 6 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 Common Disclosure Standard is a global approach to the automatic exchange of financial accounts and tax-related information with financial regulatory organizations around the world through secure channels.

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 the failures of banks to achieve appropriate levels of compliance with respect to required due diligence and reporting procedures and standards.

The Central Bank has allowed all banks operating in the country sufficient time to apply the common disclosure standard.

The Central Bank 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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