Abu Dhabi, UAE–The Central Bank of the UAE (CBUAE) has removed the board of directors of an insurance company operating in the UAE and replaced it with a temporary committee of experts for six months.
The central bank, however, didn’t disclose the name of the insurance company, and what led to the removal of the board of directors.
It said in a statement that “this administrative sanction is imposed in accordance with Article 41 of the Federal Law No. 6 of 2007 on the Regulation of Insurance Operations.”
It went on to add that the committee will carry out business and dispositions on behalf of the company in accordance with its mandate.
The central bank said that through its supervisory and regulatory mandates it works to ensure that all insurance companies and professions related to insurance companies, comply with the UAE laws and regulations adopted by the CBUAE, to safeguard the transparency and integrity of the insurance industry and the UAE financial system.
According to some reports, it is perhaps for the first time that the regulator has removed the board of a company for violating the laws..
Last December, the bank cancelled the registration of BH Insurance Brokerage under the applicable insurance brokers’ regulations.
Before that it imposed an administrative sanction on two insurance companies for failure to meet its regulatory obligations.
One of the firms was prohibited from issuing additional insurance policies to new customers for one year.
On May 16, the Central Bank imposed administrative sanctions on eight banks in the UAE for failures to comply with its 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.