UAE Central Bank fines a foreign bank branch AED 200 million for repeated compliance failures, with additional penalties imposed on two senior executives
The Central Bank of the UAE (CBUAE) has imposed an AED 200 million financial penalty on a foreign bank branch operating in the country. The decision follows regulatory examinations that uncovered significant and repeated failures in anti-money laundering controls, governance and compliance management.
The regulator announced the penalty on October 30 under the federal law governing the Central Bank and financial institutions. The bank’s identity was not disclosed.
Senior Bank Executives Face Additional Fines
The Central Bank also imposed individual financial penalties on two senior officials for failing to fulfil their professional responsibilities. The bank’s Chief Executive Officer received an AED 500,000 fine, while its Head of Compliance and Money Laundering Reporting Officer was fined AED 300,000. Together, the penalties amount to AED 200.8 million.
The regulatory examinations identified repeated weaknesses in measures designed to prevent money laundering, terrorist financing and the financing of illegal organisations. Authorities also found shortcomings in the bank’s sanctions framework and internal compliance systems.
Bank Ordered to Strengthen Compliance
Beyond the financial penalties, the Central Bank ordered the foreign bank to implement a mandatory remediation programme. Independent reviewers must validate the corrective measures to ensure the institution addresses its identified weaknesses.
The regulator also ordered a reassessment of the suitability of the Chief Executive Officer and Chief Compliance Officer to continue serving in their respective positions. These measures aim to strengthen accountability and improve regulatory compliance across the institution.
Impact to Expect
The enforcement action reinforces the UAE’s commitment to financial transparency and stronger banking oversight. Banks operating in the country face continued regulatory scrutiny, particularly concerning anti-money laundering procedures, sanctions compliance and corporate governance. The Central Bank maintains that financial institutions and their executives must follow UAE regulations to safeguard the financial system’s integrity.
