Trends
Foreign Bank in UAE Fined AED200 Million for Anti-Money Laundering Failures
The CBUAE has fined a foreign bank branch in the UAE AED 200 million after holding supervisory examinations. The action was a result of frequent and substantial failures in: anti-money laundering controls; anti-money laundering governance and compliance controls; anti-counter terrorism financing; counter-terrorism financing controls; governance and control; and internal receiving processes for sanctions controls.
UAE Bank AML Fine Follows Major Compliance Failures
The UAE Bank AML Fine stemmed from the serious gaps regulators have spotted in the bank’s compliance practices, across the board in branches. The findings included AML and CTF controls, governance weaknesses, compliance failures and weaknesses in their sanctions related procedures. The enforcement action demonstrates the seriousness with which the regulatory failures identified are taken.
UAE Bank AML Fine Also Targets Senior Executives
In addition to penalising the institutions, the CBUAE’s stricter measures involved top-ranking officers at the bank such as the CEO and Head of Compliance. The measures were implemented based on the UAE banking laws, which introduced personal responsibility to content of the regulatory action in light of the recognized shortcomings in compliance.
UAE Bank AML Fine Brings Mandatory Remediation
An independent validation is required for a mandatory remediation programme ordered by the CBUAE in order to be performed by the bank. A formal fit and proper reevaluation will also be carried out on senior leadership and compliance staff. The measures are to correct weaknesses identified and to enhance the institution’s regulatory controls.
UAE Bank AML Fine Reinforces Regulatory Oversight
The curation showcases the CBUAE’s robust stance on financial crime compliance, its adherence with Financial Action Task Force recommendations and recommendations issued by the UAE’s National AML/CFT Strategy. The measures focus on addressing vulnerabilities on a systemic level and safeguarding the integrity, transparency and stability of the UAE financial system.
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