The Central Bank of UAE ('CBUAE') announced, on 14 December 2021, its decision in a case relating to a bank operating in the UAE, in which it had imposed an administrative measure followed by a financial sanction of AED 19.5 million (approx. €4.7 million) on the bank, pursuant to 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'), following failures in relation to its anti money laundering ('AML') and sanctions compliance framework.

Background to the decision 

In particular, the CBUAE noted that it had taken a two-step approach to the enforcement, starting with the imposition of monitoring on the bank, on 14 August 2021, which required the appointment of a consultant to take necessary urgent actions to remediate its AML and sanctions compliance framework. Thereafter, the CBUAE stated that, on 4 November 2021, it imposed the financial sanction on the bank on account of its failure to achieve appropriate levels of compliance in its AML and sanctions compliance frameworks for an extended period of time.

Findings of the CBUAE

Notably, the CBUAE found that the bank had not sufficiently remedied its AML and sanctions compliance framework and thus failed to achieve appropriate levels of compliance in its frameworks for an extended period of time.

Outcomes

Ultimately, the CBUAE highlighted that all banks operating in the UAE are required to attain appropriate levels of AML/CFT compliance after having been allowed ample time by the CBUAE to remedy any shortcomings, and that failure to do so will lead the CBUAE to impose financial sanctions.

Additionally, the CBUAE noted that the bank has the right to appeal against the imposition of the financial sanction. 

You can read the press release here.