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The UAE Central Bank has sanctioned 11 banks operating in the country for failure to fully comply with anti-money laundering and terrorist financing regulations.
The authority on Sunday confirmed it had slapped a total of 45.8 million UAE dirhams ($12.5 million) in fines to the offending banks on January 24, 2021. However, the apex bank did not reveal the names of the banks.
The financial sanctions are pursuant to Article 14 of the Federal Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations (AML/CFT Law).
“The financial sanctions take into account the banks’ failures to achieve appropriate levels of compliance regarding their AML and Sanctions Compliance Frameworks as at the end of 2019,” the regulator said.
Anti-money laundering drive
The UAE has been vigilant against illegal financial transactions. According to the International Monetary Fund (IMF), money laundering and the financing of terrorism are financial crimes that have negative economic effects.
“These activities generate financial flows that involve the diversion of resources away from economically- and socially-productive uses—and these diversions can have negative impacts on the financial sector and external stability of member states,” the IMF said.
According to the UAE central bank, all banks in the country have been given ample time to ensure they comply with the regulations.
“[They] were instructed in the middle of 2019 to ensure compliance by the end of that year, informing them that further shortcomings would result in penalties under the [law],” it said.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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© ZAWYA 2021
