The Central Bank of the United Arab Emirates imposed administrative procedures, followed by a financial penalty, on a bank operating in the country
The Central Bank of the United Arab Emirates imposed administrative procedures, followed by a financial penalty, on a bank operating in the country, pursuant to the provisions of Article (14) of Federal Decree-Law No. (20) of 2018 regarding countering money laundering, combating terrorist financing and financing illegal organizations, and the relevant articles and decisions issued For the Council of Ministers and the Board of Directors of the Central Bank.
The Central Bank has taken a two-step approach in the process of enforcement of administrative measures and financial sanction. On August 4, 2021, the Central Bank imposed supervisory procedures on the bank, obligating it to appoint a consultant to take urgent necessary measures to address and correct deficiencies in the approved framework for compliance with the bank’s anti-money laundering and sanctions requirements. The supervisory procedures are still ongoing, and the Central Bank will continue to coordinate with the Bank to complete the process of addressing and correcting the mentioned deficiencies.
On November 4, 2021, the Central Bank imposed a financial penalty of 19,500,000 dirhams, due to the bank's failure to achieve adequate levels of compliance with its anti-money laundering frameworks and penalties for an extended period of time.
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