UAE Central Bank cancels insurance broker’s registration

Recently, the institution also imposed financial sanctions on exchange houses for violating the laws and regulations of the country



by

Waheed Abbas

Published: Tue 27 Dec 2022, 4:14 PM

Last updated: Tue 27 Dec 2022, 5:12 PM

The Central Bank of the UAE (CBUAE) on Tuesday said it cancelled the registration of BH Insurance Brokerage.

The reason for the cancellation of the registration was not disclosed. However, the regulator said the decision has been taken in accordance with the applicable insurance brokers’ regulation.

“The CBUAE, through its supervisory and regulatory mandates, works to ensure that all insurance companies and professions related to insurance companies, comply with the UAE laws and regulations adopted by the CBUAE, to safeguard the transparency and integrity of the insurance industry and the UAE financial system,” the regulator said.

In October 2020, the UAE’s Insurance Authority was merged with the Central Bank. The apex bank now regulates the insurance sector as well.

This is one of the rare instances in which the registration of the company has been cancelled by the regulator.

Recently, the Central Bank also imposed financial sanctions on exchange houses for violating the laws and regulations of the country.

Last week, the Central Bank issued new guidance on anti-money laundering and combatting the financing of terrorism for companies operating in the insurance sector, including insurers, re-insurers, agents and brokers. The regulator had said that all companies in the insurance sector must demonstrate compliance with its requirements within one month.

It said companies must perform customer due diligence, understand the nature of the customer’s business and the nature and purpose of the operator’s relationship with the customer – including the expected uses to which the customer will put the operator’s products or services, and subject all customers to ongoing monitoring throughout the business relationship.

“Moreover, the operators must apply enhanced due diligence measures if they identify a customer or relationship presenting higher ML/TF risks,” it said.

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