UAE Sanctions Bank CEO and Compliance Chief Over Major Regulatory Lapses

The Central Bank of the UAE (CBUAE) has imposed a Dh200 million fine on a local branch of an unnamed foreign bank following a regulatory investigation into systemic internal failures. The penalty, announced on Friday, 30 October, follows an examination that uncovered repeated lapses in the institution’s anti-money laundering (AML) and counter-terrorism financing (CFT) protocols. Individual penalties and governance failures In addition to the corporate fine, the CBUAE levied individual financial penalties against the bank’s top leadership. The Chief Executive Officer was fined Dh500,000, while the Head of Compliance and Money Laundering Reporting Officer (MLRO) received a Dh300,000 penalty. The regulator cited significant gaps in governance, compliance management, and the bank’s sanctions framework as the primary drivers for the enforcement action. The move follows a period of heightened oversight by the CBUAE to ensure all licensed financial institutions operate within the Federal Decree Law Regarding the Central Bank and Organisation of Financial Institutions and Activities. The regulator has now mandated a Mandatory Remediation Programme for the branch, which must be completed under independent third-party validation. Remediation and leadership review The foreign bank is required to undergo a "Fit and Proper" re-assessment of both the CEO and the Chief Compliance Officer to determine their suitability for their current roles. This enforcement action is timely as the UAE…