UAE Penalizes Insurance company with Dh1.2 Million for Regulatory Non-Compliance

Asma - | UAE

A pecuniary sanction of Dh1.2 million was imposed by the Central Bank of the UAE (CBUAE) on an insurance company that conducted operations within the Emirates.

This penalty is mandated under Article 14 of Federal Decree Law No. 20 of 2018, which focuses on anti-money laundering, combating the financing of terrorism, and financing of illegal organizations (AML/CFT).

The Central Bank conducted a routine examination that led to the imposition of the Dh1.2 million fine. This examination and subsequent investigations exposed notable deficiencies in the Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) policies and procedures of the subject insurance company.

In executing its supervisory and regulatory responsibilities, the Central Bank strives to ensure rigorous compliance among insurance companies, their proprietors, and staff with the laws, regulations, and standards established by the CBUAE. This commitment is imperative for maintaining the transparency and integrity of the insurance sector and, consequently, the broader financial system within the UAE.

The financial penalty functions as a mechanism to reinforce adherence to established regulatory frameworks, emphasizing the significance of robust AML/CFT measures within the insurance industry. The Central Bank's dedication to upholding these standards highlights its commitment to sustaining a secure and transparent financial environment in the UAE.

As part of its supervisory obligations, the Central Bank routinely conducts examinations to evaluate the compliance of financial institutions with AML/CFT regulations. In this particular instance, the findings from such an examination have led to the imposition of a substantial fine, signaling the gravity attributed to adherence to these pivotal regulatory measures.

This action not only addresses specific deficiencies in the policies and procedures of the penalized insurance company but also serves as a broader reminder to the financial sector about the stringent expectations concerning anti-money laundering and counter-terrorism financing measures.

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