Source: ZAWYA
Dubai – The Central Bank of the UAE (CBUAE) has penalised two and warmed three insurance brokers for the lack of compliance with anti-money laundering (AML) and combating the financing of terrorism (CTF) laws, as it continues its efforts to enhance the financial system’s soundness.
Two brokers were fined and three others were censured following on-site inspections, which identified deficiencies in the brokers’ AML and sanctions compliance systems. The measures were taken pursuant to Article (14) of Federal Decree Law No. (20) of 2018 on AML and Combating the Financing of Terrorism and Illegal Organisations.
According to the Central Bank the action is in line with its supervisory and regulatory responsibilities to ensure that insurance intermediaries operate in a fully compliant manner with the laws of the UAE In a statement, the Central Bank said
“The CBUAE, through its supervisory and regulatory mandates, works to ensure that all insurance brokers and insurance-related professions abide by UAE laws, regulations, and standards,” the regulator said in a statement, noting that effective compliance is essential to protect the broader financial ecosystem.
The identities of the sanctioned brokers, as well as the extent of their financial penalties, were not officially revealed, but the central bank has clearly demonstrated that lack of adherence within the insurance industry will not be tolerated.
Context
The new measures come after a Dh3. 5 million (Dh91m) penalty last year to a UAE exchange house for similar AML violations. The CBUAE has taken steps to crack down on lax compliance at financial institutions, including issuing more detailed rules and carrying our inspections to ensure better risk controls.
The entire financial sector of the UAE has undertaken to further increase transparency, accountability and measures to combat financial crime, said the regulator
