UAE Fines Foreign Bank Branch Dh1.82M for Delaying Liability Letter

The Central Bank of the UAE (CBUAE) has imposed a financial penalty of Dh1.82 million on a branch of a foreign bank licensed to operate in the country after it failed to issue a customer liability letter within the legally prescribed timeframe.

The sanction was imposed under Federal Decree-Law No. 6 of 2025 on the Central Bank, the regulation of financial institutions and activities, and the insurance business.

According to the CBUAE, supervisory examinations found that the bank branch did not issue a liability letter within the mandatory seven-day period, in breach of the regulator's Market Conduct and Consumer Protection Regulations and Standards.

A liability letter is an important banking document that enables customers to transfer loans between banks, settle outstanding liabilities or complete other financial arrangements. Delays in issuing the document can hinder customers' ability to access banking services and make informed financial decisions.

The Central Bank said the enforcement action reflects its commitment to ensuring that banks and their employees comply with UAE laws, regulations and supervisory standards designed to protect consumers and uphold high standards of market conduct.

The regulator added that its supervisory framework aims to promote transparency, strengthen the integrity of the banking sector and safeguard confidence in the UAE's financial system.

The CBUAE did not disclose the identity of the foreign bank branch that was fined.


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