It has been asked to remediate the violations as well as rectify issues related to the composition of the board of directors
File photo
The Central Bank of the UAE (CBUAE) has imposed penalty on a financial company for weak compliance culture as well as for violating laws of anti-money laundering and combating the financing of terrorism (AML/CFT) and illegal organisations.
The regulator fined Dh1.8 million to the company and asked it to remediate the violations as well as rectify issues related to the composition of the board of directors.
However, the apex bank didn’t disclose the name of the finance company.
The regulator imposed financial sanctions on exchange houses last year for violating the AML/CFT laws of the country.
On Thursday, the sanctions were imposed on the finance company after a review was carried out by a consultant and also examined by the Central Bank which revealed high risk and repeated AML/CFT violations by the company in addition to operational failings by the board of directors.
“The findings illustrate that the finance company engaged in high risk, repeated violations and had an overall weak compliance culture relating to policies and procedures designed for AML/CFT,” the regulator said on Thursday.
The Central Bank said all finance companies, their owners and staff must abide by the UAE laws, and regulations to safeguard the transparency and integrity of the business of finance companies and the UAE financial system.
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Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.