The Central Bank of the UAE announced on 6 August 2025 that it had imposed a financial sanction of AED 600,000 on a finance company licensed by the regulator, citing market conduct failures in violation of the CBUAE's Consumer Protection Regulation and Standards, according to the sanction notice published on the central bank's website. The entity subject to the penalty was not identified by name.
MARKET CONDUCT FAILURES
The sanction relates specifically to market conduct failures rather than prudential shortcomings such as capital inadequacy or liquidity breaches. Consumer Protection Regulation and Standards in the UAE govern how licensed financial institutions interact with customers, covering areas including disclosure requirements, fair treatment obligations, complaints handling procedures, and product suitability standards.
The AED 600,000 penalty is equivalent to approximately $163,000 at prevailing exchange rates.
Finance companies, as distinct from commercial banks, occupy a specific regulatory category in the UAE and are authorised to offer products such as personal loans, auto finance, and leasing without holding a full commercial banking licence.
LEGAL BASIS
The August 2025 sanction was imposed under Article 137 of Decretal Federal Law No. (14) of 2018; the CBUAE said its supervision aims to ensure that finance companies and their staff abide by UAE laws, regulations and standards and to maintain the transparency and integrity of the finance companies industry.
Bank news that matters, every weekday.
Follow The Global Banker on LinkedIn