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Central Bank of the UAE (CBUAE). Image Courtesy: WAM
The Central Bank of the UAE (CBUAE) has imposed financial sanctions totalling 2.62 million dirhams ($713,310) on five banks and two insurance companies over non-compliance with the reporting procedures required by the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) guidelines.
The banks and the insurance companies have not been named.
The sanctions were imposed due to the institutions’ failure to meet compliance standards, particularly in due diligence and the accuracy of financial reporting, despite being granting licensed financial institutions and time for rectification, the CBUAE said.
The monetary authority added the step was taken to ensure transparency of the country’s tax systems and to combat tax evasion.
The UAE has been cracking down on tax violators on a federal level, with the country’s Federal Tax Authority (FTA) even launching a whistleblower programme in 2022 to promote community control over local markets, raise the level of tax compliance in the UAE and reduce tax evasion cases.
(Writing by Bindu Rai, editing by Brinda Darasha)
