The Central Bank of the UAE (CBUAE) has fined a UAE branch of a foreign bank Dh200 million over repeated failures in its anti-money laundering controls, governance and compliance systems.
The penalty followed examinations that identified significant and repeated shortcomings in the bank’s anti-money laundering and counter-terrorism financing measures, governance and sanctions framework, the central bank said.
The CBUAE also imposed individual fines of Dh500,000 on the bank’s chief executive officer and Dh300,000 on its head of compliance and money laundering reporting officer for failing to fulfil their responsibilities.
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In addition to the financial penalties, the bank has been ordered to implement a mandatory remediation programme, subject to independent validation.
The central bank also required a reassessment of the suitability of the chief executive officer and chief compliance officer for their respective roles.
The CBUAE said it would continue to ensure that banks, their senior decision-makers and employees comply with UAE laws and regulatory standards to safeguard the integrity and transparency of the country’s financial system.
In August, CBUAE ordered an urgent examination of Banque Misr’s branches in the country after US authorities proposed a special measure against the Egyptian lender over money laundering concerns.
The move came a day after US authorities identified Banque Misr as a financial institution operating outside the US that posed a primary money laundering concern.
The CBUAE said it had reviewed the US notice and was assessing its implications, including options regarding the Egyptian bank’s status in the UAE.
The regulator stressed that Banque Misr’s UAE branches remained subject to the country’s laws and regulations, adding that all banks licensed in the UAE must ensure their activities do not expose the country’s financial system to reputational risks.
Source: Khaleej Times