CBUAE Imposes Fines on Foreign Bank and Compliance Officer for AML Violations

The Central Bank of the United Arab Emirates (CBUAE) has imposed financial sanctions on a foreign bank operating in the country and its compliance officer. The penalties were issued following the identification of multiple violations related to anti-money laundering (AML) and the combating of financing of terrorism (CFT) regulations. Deficiencies in Compliance Framework The enforcement action was triggered by the findings of a CBUAE supervisory review, which revealed that the foreign bank failed to maintain a robust internal framework to mitigate financial crime risks. The central bank specifically cited failures in the bank’s policies and procedures, which did not meet the mandatory standards required for financial institutions operating within the UAE. In a rare move, the regulator also held an individual official accountable. The compliance officer was personally fined for failing to execute the duties and responsibilities required by the regulatory framework. This decision emphasizes the CBUAE’s focus on personal liability for senior management and oversight personnel in the banking sector. Legal Framework and Enforcement Power The administrative penalties were levied under…