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The Central Bank of the United Arab Emirates (CBUAE) has imposed a financial penalty of AED 5.9 million (approximately USD 1.6 million) on the UAE branch of a foreign bank for violations related to Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) obligations.
The sanction was issued under the authority of Article 14 of Federal Decree Law No. (20) of 2018, which governs the UAE’s legal framework on AML, CTF, and the combating of illicit organisations. The fine follows a supervisory examination conducted by the CBUAE, which identified significant compliance deficiencies in the bank’s risk management framework and its adherence to AML/CTF regulations.
In a statement issued from Abu Dhabi, the central bank affirmed that the enforcement action reflects its continued commitment to ensuring that all licensed financial institutions operating within the country uphold the highest standards of transparency, accountability, and regulatory compliance.
“The CBUAE, through its supervisory and regulatory functions, is committed to ensuring that all banks and their employees strictly adhere to UAE laws and the regulatory standards set forth to protect the integrity of the financial system,” the statement read.
The action is part of the UAE’s broader effort to strengthen the resilience of its financial system and maintain its standing as a reputable global financial centre. Authorities have intensified scrutiny of AML/CTF frameworks, especially in light of international expectations and the UAE’s national strategy for combating financial crime.
This latest penalty signals the central bank’s zero-tolerance approach to regulatory breaches and serves as a warning to all financial institutions operating in the jurisdiction that non-compliance will attract significant consequences.
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