The Central Bank of the UAE (CBUAE) financially sanctioned six banks operating in the UAE, pursuant to Cabinet Resolution No. 9 of 2021.
Financial sanctions covers banks’ failures to achieve appropriate compliance regarding required due diligence and reporting procedures and standards.
CBUAE implemented certain provisions of Common Reporting Standard (CRS) for the sanctions.
CRS is a global system for automatic exchange of financial accounts and tax-related information with other global similar organizations via secure channels.
It sets out the information to be exchanged, the types of financial institutions required, and different types of financial accounts and account holders in scope.
This also includes common due diligence procedures to be followed by financial institutions.
All banks operating in the UAE were allowed ample time by the CBUAE to implement the CRS.
The CBUAE is committed to complying with all regulations to strengthen the nation’s financial and banking system.
This supports the UAE’s commitment to global initiatives to enhance the integrity and transparency of tax systems and combat tax evasion.