Khaleej
Times, Wednesday, May 17, 2023 | Shawwal 27, 1444
AH
UAE Central Bank imposes administrative sanctions on 8 banks
by Waheed Abbas
The Central Bank of the UAE (CBUAE) on Tuesday said it imposed
administrative sanctions on eight banks operating in the UAE.
“The administrative sanctions take into account the banks’ failures to
comply with the CBUAE’s instructions not to grant any loans or credit facilities
to the beneficiaries of loans granted by the Nationals Defaulted Debts
Settlement Fund (NDDSF), including credit cards,” the regulator said in a
statement on Tuesday.
It said the decision has been taken pursuant to Article 137 of the
Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organisation
of Financial Institutions and Activities, and the Central Bank notices regarding
the beneficiaries of the Nationals Defaulted Debts Settlement Fund facilities.
The Central Bank said it will ensure that all licensed financial
institutions operating in the country, including banks, abide by the UAE laws,
regulations and standards adopted by the regulator, to safeguard the
transparency and integrity of the banks’ business and enhance the efficiency of
the UAE financial system.
The Central Bank has taken a tough stand with regard to the imposition of
regulations and laws on financial institutions and exchange houses. Earlier, the
Central Bank had also imposed administrative sanctions on exchange houses for
not adhering to regulations.
However, the authority did not disclose the names of the eight banks.