The Central Bank of the UAE (CBUAE) has imposed financial penalties amounting to Dh2.62 million on five banks and two insurance companies for breaching the country’s tax laws and failing to comply with key financial reporting requirements.

In an official statement, the CBUAE confirmed that the sanctions were levied due to the institutions’ failure to adhere to procedures under the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) guidelines. These measures are part of global efforts to enhance tax transparency and combat tax evasion.

 

Compliance Violations

The fines were issued after the affected institutions failed to meet due diligence obligations and maintain the accuracy of their financial reports, despite being given sufficient time by the Central Bank to rectify their compliance gaps.

The regulator noted that the breaches included discrepancies in the financial data reported, along with lapses in the institutions' internal monitoring processes. Such failures violate key provisions of the UAE’s financial laws and global tax compliance frameworks.

 

Strengthening Financial Integrity

The Central Bank of the UAE stated that these penalties reinforce its commitment to safeguarding the country’s financial system. The move aims to uphold the UAE’s standing as a global financial hub that operates in accordance with international best practices and robust financial laws.

The CBUAE emphasised that it would continue to take action against any licensed financial institutions that fail to comply with the country's tax laws and financial regulations, in coordination with relevant authorities.

 

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