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# UAE's central bank imposes AED 20 million penalty on foreign bank branch for AML and sanctions failures
- URL: https://www.theglobalbanker.com/cbuae-aed-20-million-penalty-foreign-bank-aml-sanctions/
- Published: 2026-06-24T16:04:00.000Z
- Updated: 2026-10-02T00:29:34.000Z
- Description: The CBUAE fined an unnamed foreign bank branch AED 20 million and its Head of Compliance AED 300,000 for repeated AML, CFT and sanctions framework failures.
- Author: TGB Editorial Team
- Tags: Regulations, MENA

The Central Bank of the United Arab Emirates has imposed a financial penalty of AED 20 million on the branch of an unnamed foreign bank operating in the country, citing significant and repeated failures in its anti-money laundering, counter-terrorism financing and sanctions framework. The regulator also fined the branch's Head of Compliance and Money Laundering Reporting Officer AED 300,000 in a personal capacity.

In a statement issued on Wednesday, the CBUAE said the sanctions were imposed pursuant to the Federal Decree-Law on the Central Bank and Organization of Financial Institutions and Activities, the legislative basis for the regulator's enforcement powers. The penalties followed CBUAE examinations of the branch.

#### FINDINGS FROM SUPERVISORY EXAMINATIONS

The CBUAE said its examinations had identified significant repeated failures in the branch's AML, CFT and sanctions framework. 

The regulator did not disclose the identity of the foreign bank concerned. It also did not provide granular detail on the specific control weaknesses, transactions or client categories that triggered the action, beyond confirming that the failures related to the AML, CFT and sanctions framework and were the product of examinations conducted by the central bank's supervisory teams.

#### PERSONAL LIABILITY FOR COMPLIANCE OFFICER

The CBUAE said the AED 300,000 penalty on the Head of Compliance and Money Laundering Reporting Officer was imposed due to his failure to fulfil his responsibilities and position functions. 

The CBUAE said the action was intended to ensure that all banks, their authorised decision-makers and staff abide by UAE laws, regulations and standards established to maintain the transparency and integrity of the banking sector and the UAE financial system. 

The affected branch has not been publicly identified and the CBUAE did not disclose any remediation measures.