The Central Bank of the UAE (CBUAE) imposed an AED 200 million penalty on an unnamed foreign bank branch licensed in the UAE after examinations identified significant, repeated control failures. The shortcomings concerned controls against money laundering and the financing of terrorism and illegal organisations, as well as governance, compliance management and sanctions frameworks. Individual penalties of AED 500,000 were imposed on the chief executive officer and AED 300,000 on the head of compliance and money laundering reporting officer for failing to fulfil their responsibilities. The foreign bank must also implement a mandatory remediation programme subject to independent validation and undertake a fit and proper reassessment of the chief executive officer and chief compliance officer.
Central Bank of the UAE fines foreign bank branch AED 200 million for repeated control failures
The Central Bank of the UAE fined an unnamed foreign bank branch AED 200 million for significant, repeated failures in financial crime controls, governance, compliance management and sanctions frameworks. It also imposed penalties of AED 500,000 on the chief executive officer and AED 300,000 on the head of compliance and money laundering reporting officer. The bank must implement independently validated remediation and reassess the fitness and propriety of its chief executive officer and chief compliance officer.