UAE Central Bank Fines Foreign Bank Branch AED 1.82 Million Over Regulatory Violations
The Central Bank of the United Arab Emirates (CBUAE) has imposed a financial penalty of AED 1.82 million (approximately $496,000) on a foreign bank branch licensed in the country. This action was taken pursuant to Federal Decree-Law No. (6) of 2025 regarding the CBUAE and the Regulation of Financial Institutions, Activities, and Insurance Businesses.
The fine was issued based on the findings of an inspection conducted by the CBUAE, which revealed the branch’s failure to issue a liability letter within the mandated seven-day timeframe. This delay constitutes a clear violation of the market conduct and consumer protection regulations and standards set forth by the Central Bank.
Through its supervisory and regulatory mandates, the CBUAE continuously works to ensure that all banks, their senior management, and employees strictly adhere to the applicable laws in the UAE, as well as the regulations and standards it adopts. These efforts aim to foster transparency and integrity within the banking sector and safeguard the nation’s financial system.