UAE imposes financial sanctions on insurer over non-compliance

UAE imposes financial sanctions on insurer over non-compliance | Insurance Business Asia

Insurance News

UAE imposes financial sanctions on insurer over non-compliance

Firm penalised under an article addressing anti-money laundering

Insurance News

By
Kenneth Araullo

The Central Bank of the United Arab Emirates (CBUAE) has levied a financial sanction of Dh1.2 million on an insurance company operating within the Emirates.

This penalty was issued in accordance with Article 14 of the Federal Decree Law No. (20) of 2018, which addresses Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organisations (AML/CFT).

According to a Khaleej Times report, the imposition of the fine follows the regular examination conducted by the Central Bank. The investigation by the CBUAE identified that the insurance company exhibited shortcomings in its AML/CFT policies and procedures. These deficiencies prompted the Central Bank to take disciplinary action in the form of this financial sanction.

The Central Bank’s role encompasses supervisory and regulatory responsibilities, ensuring compliance with UAE laws, regulations, and standards. This action reflects the CBUAE’s commitment to maintaining the transparency and integrity of both the insurance sector and the broader UAE financial system.

The bank’s enforcement of these standards is aimed at ensuring that insurance companies, their owners, and staff adhere strictly to the legal and regulatory framework established by the UAE.

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