UAE Central Bank imposes AED2.6mn in sanctions on financial institutions

The Central Bank of the United Arab Emirates (CBUAE) has levied financial sanctions worth AED2,621,000 on five banks and two insurance companies for failing to comply with international reporting standards.

The sanctions stem from the institutions’ non-adherence to reporting procedures mandated by the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) guidelines.

Specifically, the financial institutions did not meet compliance standards in crucial areas of due diligence and financial reporting accuracy, according to a statement by the Emirates News Agency (WAM), which added that the CBUAE had previously provided licensed financial institutions sufficient time to rectify these shortcomings.

The central bank emphasised that the sanctions align with global initiatives aimed at promoting tax system integrity and transparency, and combating tax evasion.

The move underscores the UAE’s commitment to maintaining its reputation as a financial centre that upholds international best practices.