Central Bank of the UAE Lifts Administrative Measures on Non-Compliant Bank

The Central Bank of the UAE (CBUAE) has declared the lifting of administrative measures previously imposed on a bank operating within the UAE. 

These measures were initiated due to the bank’s non-compliance with the CBUAE’s directives regarding the appointment of a consultant to address and rectify its Compliance Framework. 

The bank’s failure to comply led to administrative actions in accordance with Anti Money Laundering and Combating the Financing of Terrorism and Illegal Organizations (AML/CFT) regulations.

Background:

• The bank had faced administrative actions under Article 14 of Federal Decree Law No. (20) of 2018, which pertains to AML/CFT.
• The CBUAE had actively collaborated with the bank throughout the remediation process to ensure compliance.
• The Central Bank maintains a strong commitment to regulating licensed financial institutions to ensure they meet AML/CFT standards and have given them adequate time to address any deficiencies.
• In cases of persistent non-compliance, the CBUAE retains the authority to impose further administrative and financial sanctions.

CB UAE’s Commitment:

• The CBUAE will continue to closely engage with all licensed financial institutions to ensure their adherence to UAE laws, regulations, and CBUAE standards.
• This commitment is crucial for preserving the integrity of the banking system and reinforcing financial stability in the region.

A proactive approach to collaborating with financial institutions:

The lifting of administrative measures against the non-compliant bank underscores the importance of compliance with AML/CFT regulations in the UAE’s financial sector. 

The CBUAE’s proactive approach to collaborating with financial institutions and taking regulatory actions when necessary aims to strengthen the integrity of the financial system in the region.

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