CBUAE Imposes Administrative Sanction on Insurance Company for Data Protection Failures

The Central Bank of the UAE (CBUAE) has imposed an administrative sanction on an insurance company operating in the UAE.

On Monday, the CBUAE issued a warning to the insurance firm following an investigation that uncovered deficiencies in its regulatory policies and procedures.

The investigation revealed that the company had breached the 'Guidance on Personal Data' concerning the information it collects for insurance policies.

While the Central Bank did not disclose the company's name, it has instructed the firm to cease these activities immediately.

The Central Bank emphasised its commitment to ensuring that all insurance companies, their owners, and staff comply with UAE laws, regulations, and standards to maintain the transparency and integrity of the insurance sector and the country’s financial system.

Last month, the Central Bank revoked the licence of Galaxy Insurance Broker and removed its name from the register after the CBUAE's investigation exposed weak compliance and failure to meet regulatory obligations.

Earlier this month, the UAE Central Bank also imposed a financial penalty of Dh5.8 million on a bank operating in the UAE for failing to adhere to anti-money laundering and counter-terrorism financing (AML/CFT) laws.

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