The Central Bank of the UAE (CBUAE) imposed financial sanctions totalling AED 18,100,000 on two branches of foreign banks operating in the UAE on 28 May 2025. The regulator assessed a penalty of AED 10,600,000 on the first institution and AED 7,500,000 on the second, following supervisory examinations that identified violations of and failures to comply with the country's anti-money laundering and combating the financing of terrorism framework and related regulations. The CBUAE said it aims to ensure that all banks and their staff abide by UAE laws, regulations and standards to maintain the transparency of financial transactions.
The sanctions were imposed under Article 14 of Federal Decree Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations, the primary legislative framework governing AML/CFT obligations for financial institutions in the UAE. The CBUAE did not name either of the two foreign bank branches in its public announcement.
EXAMINATION FINDINGS
The penalties were triggered by the outcomes of CBUAE examinations, which identified deficiencies in each institution's AML/CFT compliance infrastructure. The regulator did not publish the precise nature of the violations in its announcement.
OTHER ENFORCEMENT IN MAY
The twin sanctions on 28 May 2025 came within the same calendar month as the CBUAE's separate AED 200 million fine on a UAE exchange house for AML/CFT failures, an action disclosed earlier in May.