Institutions sanctioned for not reaching appropriate levels of compliance
Published: Thursday, July 28, 2022, 10:04 am
Last update: Thursday, July 28, 2022, 10:19 am
The Central Bank of the United Arab Emirates (CBUAE) said on Thursday it imposed financial penalties on six banks operating in the UAE for failing to achieve adequate levels of compliance with required due diligence and reporting procedures and standards.
The banks have been penalized in accordance with the implementation of certain provisions of the Multilateral Administrative Agreement for the Automatic Exchange of Information and the Common Information Standard (CRS) of the Organization for Cooperation and Economic Development (OECD).
The CRS is a global methodology for the automatic exchange of financial accounts and tax-related information with other financial regulatory organizations around the world through secure channels. It establishes the necessary information that must be exchanged, the types of financial entities that must report, the different types of financial accounts and account holders in the area, as well as the due diligence procedures common rules that financial institutions must follow.
The Central Bank said the financial penalties take account of banks’ failures to achieve adequate levels of compliance with required due diligence and reporting procedures and standards. All banks operating in the UAE have been given sufficient time by the regulator to implement the CRS.
On Wednesday, the Central Bank imposed financial sanctions on an exchange house due to a weak compliance framework with due diligence policies and procedures required to prevent money laundering and terrorist financing. The Central Bank imposed a fine of 5.2 million dirhams on the exchange house.
The Central Bank said it is committed to complying with all regulations aimed at strengthening the country’s financial and banking system. This supports the UAE’s commitment to global initiatives to improve the integrity and transparency of tax systems and combat tax evasion.