The UAE Central Bank (CBUAE) has imposed a financial penalty on a local banking entity after uncovering serious lapses in its anti-money laundering (AML) policies and internal controls. This action follows a formal examination by the regulator, which revealed the institution's failure to comply with banking laws and AML regulations.

While the name of the bank was not disclosed, the CBUAE’s enforcement reflects a broader initiative to uphold the UAE’s financial system integrity and meet international compliance standards.

In an official statement, the regulator emphasised:

“The CBUAE, through its supervisory and regulatory mandates, ensures all banks and their employees abide by the UAE laws, regulations, and standards.”

This sanction is the latest in a string of punitive actions, including license revocations and fines against banks, currency exchanges, and insurance providers for non-compliance with AML procedures.

Commenting on the development, a legal expert from NYK Law Firm, a Dubai-based legal advisory firm, stated:

“This move reaffirms the Central Bank’s zero-tolerance approach toward financial misconduct. Banks and financial institutions must now take a proactive stance in updating their AML frameworks and staff training to align with current regulatory expectations.”

The UAE's Central Bank had earlier delegated the oversight of anti-money laundering operations to a new internal body, NAMLCFTC, further intensifying scrutiny across financial institutions.

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