Financial sanctions are imposed on six banks in UAE!

The Central Bank of the UAE (CBUAE) announced on Thursday that it had imposed financial sanctions on six banks operating in the UAE for failing to achieve appropriate levels of compliance with required due diligence and reporting procedures and standards. Banks were penalised for failing to implement certain provisions of the Organization for Economic Cooperation and Development’s (OECD) Multilateral Administrative Agreement for Automatic Exchange of Information and Common Reporting Standard (CRS).

The CRS is a global methodology for the automatic exchange of financial accounts and tax-related information via secure channels with other financial regulatory organisations around the world. It specifies the information that must be exchanged, the types of financial institutions that must report, the various types of financial accounts and account holders that are covered, and the common due diligence procedures that financial institutions must follow.

According to the Central Bank, the financial sanctions reflect the banks’ failure to achieve appropriate levels of compliance with required due diligence and reporting procedures and standards. The regulator has given all banks operating in the UAE ample time to implement the CRS.

The Central Bank imposed financial sanctions on an exchange house on Wednesday due to a lack of compliance with the required due diligence policies and procedures to prevent money laundering and terrorism financing. The exchange house was fined Dh5.2 million by the Central Bank. The Central Bank stated that it is committed to adhering to all regulations aimed at strengthening the country’s financial and banking system. This demonstrates the UAE’s dedication to global initiatives aimed at improving the integrity and transparency of tax systems and combating tax evasion.