DHS 19.5 Million Fine Imposed on UAE Banks for AML Failings

The Central Bank has imposed Dhs 19.5 million fine on UAE’s banks for shortcomings in the AML framework.

The UAE Central Bank has penalized banks for violating anti-money laundering regulations. The decision was made in accordance with Article 14 of Decree No.20 of 2018 on Anti-Money Laundering (AML), Counter-Financing Terrorism (CFT), Financing Illegal Organizations (FIO), and in accordance with compliance legislated by the Central Bank Board of Directors.

Dhs19.5 million was imposed against the bank for AML failure. It was mandated by the Central Bank to designate a counselor to address and eliminate loopholes in the AML framework to counter money laundering activities and to take immediate action against the suspects.

Central Bank of UAE to collaborate with the local banks and money exchanges to meet regulatory requirements and aid to resolve AML shortcomings that have been brought to attention.

Additionally, on November 4, 2021, the Central Bank also imposed a fine of Dhs19.5 million on the bank for failing to implement adequate follow-up procedures against money laundering.

It’s important to note that the UAE’s Anti-Money Laundering law requires all banks to maintain sufficient levels of follow-up. The Central Bank gave suspected financial institutions considerable time to eliminate the AML shortcomings.

However, the Central Bank representative said, “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.” 

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