UAE: Six banks penalised for failure to achieve proper levels of compliance

The Central Bank of the UAE (CBUAE) on Thursday said it imposed financial sanctions on six banks operating in the UAE for failures to achieve appropriate levels of compliance regarding required due diligence and reporting procedures and standards.

The banks have been penalised in line with implementing certain provisions of the Organisation for Economic Cooperation and Development (OECD)’s Multilateral Administrative Agreement for Automatic Exchange of Information and Common Reporting Standard (CRS).

The CRS is a global methodology for the automatic exchange of financial accounts and tax-related information with other financial regulatory organisations across the world through secure channels. It sets out the required information to be exchanged, the types of financial institutions required to report, the different types of financial accounts and account holders in scope, as well as the common due diligence procedures to be followed by financial institutions.

The Central Bank said the financial sanctions take into account the banks’ failures to achieve appropriate levels of compliance regarding required due diligence and reporting procedures and standards. All banks operating in the UAE have been allowed ample time by the regulator to implement the CRS.

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On Wednesday, the Central Bank imposed financial sanctions on an exchange house due to a weak compliance framework regarding the required due diligence policies and procedures to prevent money laundering and financing of terrorism. The Central Bank imposed a fine of Dh5.2 million on the exchange house.

The Central Bank said it is committed to complying with all regulations aimed at strengthening the nation’s financial and banking system. This supports the UAE’s commitment to global initiatives to enhance the integrity and transparency of tax systems and combat tax evasion.

- waheedabbas@khaleejtimes.com

• Dubai