Following this announcement, the Central Bank of the UAE (CBUAE) imposed a financial sanction on a bank that operates in the region of the United Arab Emirates, as a result of the findings of an examination conducted by the financial institution.
The sanction was pursuant to Article 14 of the Federal Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations.
At the same time, according to zawya, the examination conducted by the Central Bank of the UAE revealed that the bank had deficiencies in its AML/CFT policies and procedures. With this information, the financial institution imposed a fine of approximately USD 1,579,305.65 (AED5,800,000) on the UAE bank.
In addition, the Central Bank of the UAE, through its supervisory and regulatory mandates, will also continue to work to ensure that all banks and financial institutions, their owners, and staff abide by the United Arab Emirates region laws, regulations, and standards will also be adopted by CBUAE. This process is expected to take place in order to safeguard the transparency and integrity of the overall banking sector, while also focusing on the United Arab Emirates financial system and the acceleration of its development strategy. The financial institution will continue to prioritise the process of meeting the needs, preferences, and demands of clients and users in an ever-evolving market, as well as their overall privacy and safety in the industry.
The UAE, home to the Abu Dhabi Global Market and Dubai International Financial Centre, was removed from the grey list of the worldwide watchdog Financial Action Task Force (FATF) in February, capping an overall push by the authorities to clamp down on illicit financial flows.
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