UAE Central Bank ends monitoring financial institution after compliance with anti-money laundering rules
Central bank had taken action on entity in Aug. 2021 over its AML processes
Dubai: The UAE Central Bank has ended all 'administrative measures' it had imposed on a bank operating in the country. The latest move follows the bank adhering to the regulator's directives on the appointment of a consultant to 'take action and re-mediate its Anti Money Laundering (AML) compliance framework'.
It was August 4, 2021 that the central bank imposed administrative measures on the bank, under Article 14 of the Federal Decree Law No. (20) of 2018 on anti-money laundering and combating the financing of terrorism and illegal organisations (AML/CFT). Plus, the bank was amiss in adhering to pertinent 'decisions of the Cabinet and the CBUAE’s Board of Directors in relation to AML/CFT'.
The central bank then 'continued to coordinate with the bank to complete the re-mediation process'.
The identity of the bank was not revealed.
The 'CBUAE works closely with the UAE’s licensed financial institutions to ensure their compliance with AML/CFT standards - having been allowed ample time to remedy any shortcomings', the regulator said.
"In cases of non-compliance, the CBUAE will impose further administrative and/or financial sanctions. Through its regulation and supervision of the financial sector, the CBUAE will continue to work closely with all licensed financial institutions to ensure their adherence to the UAE’s laws and regulations and the standards set forth by the CBUAE in order to maintain the integrity of the banking system and enhance financial stability."
In the recent past, the central bank has taken action against multiple entities, including currency exchange houses, for any observed acts of omission related to their anti-money laundering processing. Stiff penalties have accompanies such actions taken.