The Central Bank of the United Arab Emirates (CBUAE) has levied a fine of Dh200 million on a foreign bank branch operating within the country for significant regulatory breaches. The penalty follows an investigation that uncovered repeated deficiencies in the bank’s anti-money laundering (AML) and counter-terrorism financing (CTF) controls, governance practices, compliance management, and sanctions adherence.

The enforcement action was taken under the authority of the Federal Decree Law Regarding the Central Bank and Organisation of Financial Institutions and Activities. In addition to the substantial fine imposed on the bank, the CBUAE fined the branch’s chief executive officer Dh500,000 and the head of compliance and money laundering reporting office Dh300,000 for their respective roles in the oversight failures.

According to the regulator, the breaches indicated systemic lapses in the branch’s ability to prevent money laundering and the financing of illegal organizations. The case highlighted ongoing concerns about how the institution managed governance and compliance frameworks critical to the integrity of the UAE’s financial sector.

To address these issues, the Central Bank mandated that the bank undertake a comprehensive remediation program subject to independent validation. The program includes a fitness and propriety reassessment of the CEO and the chief compliance officer to ensure they meet the required standards for their positions.

This enforcement action underscores the UAE’s continued emphasis on strengthening AML/CTF controls and adherence to international financial regulations. The Central Bank has increasingly intensified supervisory measures to safeguard the country’s financial system from illicit activities and enhance overall compliance among licensed institutions.