The key facts
- The UAE Central Bank fined a foreign bank branch 200 million dirhams ($54,458,815)
- The CEO was fined 500,000 dirhams, and the head of compliance and the money laundering reporting officer 300,000 dirhams each
- The bank must implement a corrective plan and reassess the fitness of its top executives
Fine and personal sanctions
The Central Bank of the UAE (CBUAE) has fined a branch of a foreign bank 200 million dirhams — about $54.5 million — for violating anti-money laundering legislation, The National reported. At the same time, the regulator personally fined the branch's chief executive officer 500,000 dirhams, and the head of the compliance function and the money laundering reporting officer 300,000 dirhams each for failing to fulfil their duties.
What the investigation revealed
The regulator's investigation revealed, in the CBUAE's wording, 'significant and repeated' failures in the areas of anti-money laundering, countering the financing of terrorism and illegal organisations, as well as in corporate governance, compliance management and sanctions procedures. The fine was imposed on the basis of the federal decree-law on the Central Bank and the regulation of financial institutions.
Mandatory measures and context
In addition to the fine, the CBUAE ordered the bank to implement a corrective action plan, undergo an independent review of it, and reassess whether the CEO and the chief compliance officer are fit for their positions. The regulator emphasises that through its supervisory powers it monitors banks and their employees to ensure compliance with UAE laws and CBUAE rules. The article was published alongside other reports on financial oversight in the emirates: earlier, The National wrote about the position of Bank of Baroda, which said it was ready to 'defend its interests' after BR Shetty's $15 billion lawsuit, as well as about a Sharjah police operation against organised crime with 33 people detained in a case linked to money laundering.
