UAE fines foreign bank Dh1.82 million over liability letter delay

Abu Dhabi: The Central Bank of the UAE has imposed a financial sanction of Dh1.82 million on a branch of a foreign bank licensed to operate in the country.

The regulator said the penalty was issued under Federal Decree-Law No. 6 of 2025 regarding the Central Bank, regulation of financial institutions and activities, and insurance business.

Liability letter delay

The sanction followed examinations conducted by the CBUAE, which found that the branch failed to issue a liability letter within the mandated seven-day period.

The Central Bank said the delay violated its Market Conduct and Consumer Protection Regulations and Standards.

A liability letter is commonly required by customers when moving loans, settling liabilities or transferring banking arrangements, making timely issuance important for consumer access and banking transparency.

Consumer protection focus

The CBUAE said the action falls within its supervisory and regulatory mandate to ensure banks, their leadership and employees comply with UAE laws and the standards set by the regulator.

The Central Bank said these rules are intended to safeguard transparency and integrity across the banking sector and the wider UAE financial system.

The regulator did not name the foreign bank branch in its statement.