Latest news with #ShariaGovernance
The National
07-07-2025
- Business
- The National
UAE Central Bank fines exchange houses Dh4.1m for failing to comply with anti-money laundering law
The UAE Central Bank imposed a fine of Dh4.1 million ($1.1 million) on three exchange houses for failing to comply with the law on anti-money laundering and counter-terrorism financing (AML/CFT), as it continues its fight against illegal financial activity. Financial sanctions were imposed after investigations revealed the three exchange houses failed to comply with AML/CFT policies and procedures, the Central Bank said on Monday. It did not disclose the names of the exchange houses. The banking regulator has been cracking down heavily on regulatory non-compliance. Last week, it imposed a fine of Dh5.9 million on a branch of an unnamed foreign bank operating in the UAE for failing to comply with the AML/CFT framework and related regulations. In June, the Central Bank imposed a Dh100 million fine on an exchange house for 'significant failures' in its AML/CFT framework. Also last month, the Central Bank suspended the Islamic window of a bank operating in the country from onboarding new customers for six months and fined it more than Dh3.5 million for non-compliance with Sharia governance rules. An Islamic window is a unit within a conventional bank through which customers are offered banking services and products complying with Sharia principals. The sanctions were imposed after the banking regulator's Sharia supervision examination, the Central Bank said on Wednesday. The name of the lender was not disclosed. In May, the regulator also fined an exchange house Dh200 million for the same offence. A Dh500,000 fine was imposed on a branch manager, who was barred from working in any licensed financial institutions in the UAE. "The UAE Central Bank, through its supervisory and regulatory mandates, endeavours to ensure that all exchange houses, their owners, and staff abide by the UAE laws, regulations and standards ... to maintain transparency and integrity of the financial transactions and safeguard the UAE financial system," the Central Bank said in a statement on Monday. The UAE has introduced a series of initiatives to regulate the country's financial sector and passed strict laws to prevent money laundering and the financing of terrorism. The Central Bank unveiled AML/CFT guidelines in 2023 for licensed financial institutions including banks, finance companies, exchange houses, insurance companies, agents and brokers. The guidelines focus on the use of digital identification systems by licensed financial institutions to address customers' due diligence obligations. Last year, the Emirates announced an action plan to boost its fight against illicit financial activity, introducing the 2024-2027 National Strategy Anti-Money Laundering, Countering the Financing of Terrorism and Proliferation Financing. The strategy has 11 goals outlining the 'legislative and regulatory reforms the UAE is taking to prevent the impact of illegal activities on society'. In August, the government amended its laws against money laundering and the financing of terrorism and crime groups and formed a national committee on such crimes. In 2021, the UAE established the Executive Office of Anti-Money Laundering and Counter-Terrorism Financing, an agency to deal with money launderers, as well as organisations and people suspected of financing terrorists and organised crime.
UAE Moments
26-06-2025
- Business
- UAE Moments
UAE Bank Banned from Taking New Customers for 6 Months
A UAE-based bank has been barred from accepting new customers for six months after breaking Sharia governance rules that apply to Islamic banking. The Central Bank of the UAE (CBUAE) issued the decision following an investigation and also slapped the bank with a fine of Dh3.5 million. Central Bank Found Compliance Failures According to the Central Bank, a regulatory review uncovered major lapses in the bank's adherence to Sharia requirements. These included violations of the Sharia Governance Framework, which outlines how Islamic financial services should be run in the country. The decision was made under Article 137 of the Decretal Federal Law No. 14 of 2018, which governs the operations of financial institutions in the UAE. What This Means for Customers The six-month ban means the bank cannot open new accounts or onboard new clients during this period. However, existing customers will not be affected, and the bank will continue its normal operations for them. The CBUAE stressed its commitment to maintaining integrity and transparency in the banking sector. It warned that all licensed financial institutions are expected to follow the legal standards in place and that non-compliance will result in firm action.
Arabian Business
25-06-2025
- Business
- Arabian Business
CBUAE suspends new Islamic Banking customers at UAE Bank for 6 months
The Central Bank of the UAE has suspended the onboarding of new customers on the Islamic Window of a bank operating in the UAE, for six months and imposed a financial sanction of AED3,502,214 ($953,000). The move adheres to Article 137 of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organisation of Financial Institutions and Activities, and its amendments. The sanctions result from the Central Bank's Sharia supervision examinations, which revealed the bank's non-compliance with the instructions related to Sharia' Governance of the Islamic Window and the provisions of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organisation of Financial Institutions and Activities, and its amendments. UAE Islamic Banking sanction The CBUAE, through its supervisory and regulatory mandates, endeavours to ensure that all banks and their staff, abide by the country's laws, regulations and standards established by the Central Bank to maintain transparency and integrity of the banking sector and safeguard the financial system.
Sharjah 24
25-06-2025
- Business
- Sharjah 24
CBUAE penalises bank over Islamic Window violations
Findings from Sharia supervision The sanctions stem from the CBUAE's Sharia supervision examinations, which revealed the bank's non-compliance with instructions related to Sharia Governance of the Islamic Window, as well as violations of the Decretal Federal Law No. (14) of 2018 and its amendments. Ensuring compliance and sector integrity Through its supervisory and regulatory role, the CBUAE aims to ensure that all banks and their staff adhere to UAE laws, regulations, and standards. This is to uphold transparency and integrity in the banking sector and safeguard the UAE's financial system.
Zawya
25-06-2025
- Business
- Zawya
CBUAE suspends the onboarding of new customers in the Islamic window of a bank for six months
Abu Dhabi: The Central Bank of the UAE (CBUAE) has suspended the onboarding of new customers on the Islamic Window of a bank operating in the UAE, for six months and imposed a financial sanction of 3,502,214, pursuant to Article 137 of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organisation of Financial Institutions and Activities, and its amendments. The sanctions result from the CBUAE's Sharia supervision examinations, which revealed the bank's non-compliance with the instructions related to Sharia' Governance of the Islamic Window and the provisions of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organisation of Financial Institutions and Activities, and its amendments. The CBUAE, through its supervisory and regulatory mandates, endeavors to ensure that all banks and their staff, abide by the UAE laws, regulations and standards established by the CBUAE to maintain transparency and integrity of the banking sector and safeguard the UAE financial system.
