UAE central bank fines 2 foreign bank branches over Dh18m

May 29, 2025 (MLN): The UAE's central bank has imposed a hefty penalty against two branches of foreign banks operating inside the country.

These financial sanctions were issued in accordance with the anti-money laundering laws of the Emirates.

The two banks were hit with a collective fine of Dh18,100,000 with the first bank getting a Dh10,600,000 penalty and the second getting a Dh7,500,000 sanction.

These penalties were imposed after the Central Bank of the UAE (CBUAE) conducted examinations, as per Khaleej Times.

The examinations revealed violations and failures to comply with the Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations framework, as well as related regulations.

The authority works to ensure that all banks and their staff in the country abide by UAE's law, regulations and standards established by the CBUAE to maintain transparency of financial transactions and safeguard the country's financial system.

In an earlier incident this month, the authority slapped a Dh200 million fine on an exchange house after uncovering major violations of anti-money laundering (AML) and counter-terrorism financing regulations.

A branch manager was also fined Dh500,000 and permanently barred from holding any role at licensed financial institutions in the country.

Meanwhile on March 25, five banks and two insurance companies operating in the UAE were penalised for non-compliance with tax rules.

The Central Bank imposed financial sanctions totaling Dh2,621,000 on banks and insurance companies.

These penalties were due to their failure to report procedures required by the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) guidelines.

On August of 2024, the UAE issued a federal decree amending certain provisions of the Anti-Money Laundering and Combating the Financing of Terrorism law by establishing committees to overlook the same.

The new move is aimed at developing the legislative and legal structure of the nation to ensure compliance with international standards.

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