Daijiworld Media Network – Abu Dhabi

Abu Dhabi, Jun 25: The Central Bank of the UAE (CBUAE) has imposed a fine of AED20 million on a branch of a foreign bank after identifying serious shortcomings in its compliance and anti-money laundering controls.

In a statement, the regulator said inspections revealed significant and repeated failures in the bank's systems designed to combat money laundering, terrorist financing, illegal organisations and sanctions-related risks.

The CBUAE also imposed a separate fine of AED300,000 on the bank's Head of Compliance and Money Laundering Reporting Officer, stating that the official had failed to adequately discharge responsibilities associated with the position.

The penalties were issued under the provisions of the Federal Decree Law concerning the Central Bank and the regulation of financial institutions and activities in the UAE.

The central bank reiterated its commitment to ensuring that banks and their employees fully comply with the country's laws and regulatory requirements. It said the measures are aimed at safeguarding the integrity, transparency and stability of the UAE's financial system.

The regulator did not disclose the name of the foreign bank involved in the enforcement action.