UAE bans bank from accepting new customers for 6 months, fines it Dh3.5 million

A bank in the UAE will not be allowed to accept new customers for a period of six months for breaking the Sharia requirements for financial institutes.

The Central Bank of the UAE (CBUAE) has taken the regulatory action for non-compliance with Sharia governance requirements and the bank has also been fined Dh3,502,214.

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According to the CBUAE, the sanctions follow supervisory examinations which revealed the bank’s failure to comply with instructions related to the Sharia Governance Framework for Islamic banking services, as well as other relevant provisions of the law.

The measures were imposed under Article 137 of Decretal Federal Law No. (14) of 2018 concerning the Central Bank and the Organisation of Financial Institutions and Activities, along with its amendments.

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The Central Bank emphasised that it remains committed to ensuring that all licensed financial institutions operating in the UAE adhere to the legal and regulatory standards established to uphold transparency and integrity in the banking sector.

Through its ongoing regulatory efforts, the CBUAE seeks to safeguard the stability and soundness of the UAE’s financial system and maintain public trust in its banking institutions.