The UAE central bank fined a foreign bank Dh20 million on June 24, after repeated breaches of anti‑money‑laundering rules. The penalty was imposed under the anti‑money laundering and combating the financing of terrorism and illegal organisations and sanctions framework overseen by the CBUAE, which aims to preserve the integrity of the UAE’s financial system. The regulator also levied a Dh300,000 penalty on the bank’s Head of Compliance and Money Laundering Reporting Officer for failing to meet his duties.
Fine details and individual penalty
The authority said the foreign bank’s branch repeatedly fell short of the anti‑money laundering and combating the financing of terrorism and illegal organisations and sanctions framework. After a series of investigations, the central bank imposed the Dh20,000,000 fine, signalling a firm response to non‑compliance and underscoring the CBUAE’s role in ensuring banks abide by UAE law, regulations and standards. The regulator highlighted that the repeated failures threatened transparency of financial transactions and the broader stability of the financial system.
In addition, the Head of Compliance and Money Laundering Reporting Officer received a Dh300,000 individual penalty. The regulator explained that the officer did not fulfil his responsibilities and position functions, prompting the separate sanction and demonstrating personal accountability within the compliance hierarchy.
Regulatory background and updated AML framework
This is not the first time the central bank has taken action against foreign banks. In July last year, the authority imposed a Dh5.9 million penalty on a foreign bank branch for similar AML failures. Earlier in the same year, two foreign banks were hit with a collective fine of Dh18,100,000 – the first receiving Dh10,600,000 and the second Dh7,500,000. These enforcement steps form part of the CBUAE’s ongoing effort to maintain transparency of financial transactions and safeguard the country’s financial system.
In April 2026, the central bank issued a major update to its guidance on anti‑money laundering, terrorism financing and proliferation financing. The revised framework gives clearer instructions to banks, exchange houses and registered hawala providers on spotting suspicious transactions, assessing emerging risks and strengthening internal monitoring systems. It supports the UAE’s National Strategy for Anti‑Money Laundering and Counter‑Terrorism Financing (2024–2027) and aligns with the Financial Action Task Force’s expectations, helping institutions protect the financial system and strengthening confidence among global investors, correspondent banks and regulators.
Frequently asked questions
What is the UAE central bank fine for AML breaches
The UAE central bank imposed a Dh20 million fine on a foreign bank for repeated breaches of anti-money-laundering rules.
Why did the UAE central bank fine a foreign bank
The UAE central bank fined a foreign bank for repeated failures to meet anti-money laundering and combating the financing of terrorism and illegal organisations and sanctions framework.
What is the new AML framework by UAE central bank
The UAE central bank issued an updated AML framework in April 2026, providing clearer instructions to banks on spotting suspicious transactions and assessing emerging risks.
