The Central Bank imposes penalties on a financing company operating in the country

The Central Bank of the United Arab Emirates imposed a financial penalty and operational requirements on a financing company operating in the country, in accordance with the provisions of Article 14 of Federal Decree-Law No. 20 of 2018 regarding countering money laundering and combating the financing of terrorism and financing illegal organizations, and Article 137 of Federal Decree-Law No. “14” for the year 2018 regarding the Central Bank and the organization of financial establishments and activities.

The value of the imposed financial penalty amounted to 1,800,000 dirhams, while the operational requirements ranged from obliging the finance company to deal with violations, and to asking its board of directors to meet to correct the violations related to its formation.

The penalties come as a result of the inspections conducted by the Central Bank and the advisory review carried out by a third party, which revealed the existence of high risks and repeated abuses in the financing company regarding money laundering and terrorist financing, in addition to deficiencies in operational operations by the Board of Directors.

The results also showed that the financing company is involved in repeated violations and grave risks, in addition to the lack of compliance with the policies and procedures designed to prevent the occurrence of any crimes related to money laundering and terrorist financing.

The Central Bank of the United Arab Emirates, through its oversight and supervisory functions, ensures that all financing companies operating in the country, and their owners and employees, comply with the laws in force in the country and the regulations and standards approved by the Central Bank, with the aim of preserving the transparency and integrity of the financing companies’ work and protecting the country’s financial system.

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