The Central Bank of the United Arab Emirates (CBUAE) has imposed a financial penalty of Dh1.2 million on an insurance company operating within the Emirates.
This sanction was enacted in accordance with Article 14 of Federal Decree Law No. (20) of 2018, which pertains to Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations (AML/CFT).
As reported by Khaleej Times, the fine was levied following a routine examination conducted by the Central Bank. The investigation revealed deficiencies in the insurance company’s AML/CFT policies and procedures. Consequently, the CBUAE took disciplinary action in the form of this monetary penalty.
The Central Bank’s mandate includes supervisory and regulatory roles, ensuring adherence to UAE laws, regulations, and standards. This disciplinary measure underscores the CBUAE’s dedication to upholding transparency and integrity within the insurance sector and the broader UAE financial system.
The bank’s enforcement of these standards aims to ensure strict compliance with the legal and regulatory framework established by the UAE for insurance companies, their owners, and employees.
