UAE: Bank fined Dh19.5 million for not adhering to anti-money laundering rules

The Central Bank has tightened rules related to anti-money laundering, terror financing



Photo: File
Photo: File
by

Waheed Abbas

Published: Tue 14 Dec 2021, 12:07 PM

The Central Bank of the UAE has fined Dh19.5 million to a bank operating in the country for failing to comply with the anti-money laundering and combating the financing of terrorism and illegal organisations (AML/CFT) regulations.

The regulator said it also took administrative measures against the bank for not adhering to the country’s banking norms. However, it didn’t disclose the name of the bank.

The UAE Central Bank has, of late, tightened rules related to anti-money laundering and terror financing. As a result, many banks and exchange houses have been fined in the last one year.

In October, the Central Bank imposed financial sanctions on six exchange houses operating and also fined them millions of dirhams for violating AML and counter-terrorism financing laws.

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“All banks operating in the UAE are required to attain the appropriate levels of AML/CFT compliance standards, having been allowed ample time by the Central to remedy any shortcomings. Where those shortcomings remain, the Central Bank will impose financial sanctions. The Central Bank will continue to work closely with all licensed financial institutions in the country to achieve and maintain high levels of AML/CFT compliance, and will continue to impose further administrative and/or financial sanctions, as per the law, in cases of non-compliance,” it said in a statement on Tuesday.

The regulator asked the bank to appoint a consultant to monitor the bank and also take urgent measures in order to comply with the anti-money laundering and sanctions compliance framework.

“The monitorship is ongoing, and the Central Bank will co-ordinate with the bank to complete the remediation process,” said the apex bank.

However, the bank has the right to appeal against the financial penalty.

-waheedabbas@khaleejtimes.com


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