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UAE imposes Dh20-million fine on foreign bank for repeated violations
The authority also imposed an individual penalty of Dh300,000 on the Head of Compliance and Money Laundering Reporting Officer
- PUBLISHED: Wed 24 Jun 2026, 3:55 PM UPDATED: Wed 24 Jun 2026, 4:31 PM
The UAE's central bank hit a foreign bank with a hefty fine of Dh20,000,000 for repeated violations, the CBUAE announced on Wednesday, June 24.
The financial penalty came after investigations revealed that the branch had significant, repeated failures in its Anti-money Laundering and Combating the Financing of Terrorism and Illegal Organisations and Sanctions framework.
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The authority further imposed an individual penalty of Dh300,000 on the Head of Compliance and Money Laundering Reporting Officer, due to his failure to fulfil his responsibilities and position functions.
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This is not the first time the CBUAE has taken such action against a foreign bank.
In July last year, the authority imposed a financial penalty of Dh5.9 million on a foreign bank branch operating within the country for failing to comply with anti-money laundering regulations. The name of the bank penalised by the apex bank was not disclosed.
Earlier in the same year, two foreign banks were hit with a collective fine of Dh18,100,000 with the first bank getting a Dh10,600,000 penalty and the second getting a Dh7,500,000 sanction. These financial sanctions were issued in accordance with the anti-money laundering laws of the Emirates.
The authority works to ensure that all banks and their staff in the country abide by UAE's law, regulations and standards established by the CBUAE to maintain transparency of financial transactions and safeguard the country's financial system.
Revised anti-money laundering framework
In April of 2026, the central bank issued a major update to its guidance on Anti-Money Laundering (AML), combating terrorism financing and proliferation financing, reinforcing the country’s push to align its financial system with the world’s most advanced compliance standards and safeguard its reputation as a trusted global financial hub.
The revised framework provides clearer instructions to banks, exchange houses and registered hawala providers on how to detect suspicious transactions, assess emerging risks and strengthen internal monitoring systems.
The move supports the UAE’s National Strategy for Anti-Money Laundering and Counter-Terrorism Financing (2024–2027) and aligns with expectations set by the Financial Action Task Force (FATF), the global watchdog overseeing financial crime compliance.
The update helps financial institutions better identify their customers, understand where money is coming from, track unusual trade activity, and prevent funds from being diverted into illegal channels. That strengthens confidence among global investors, correspondent banks and regulators dealing with the UAE.
