A bank operating in the UAE has been slapped with a six-month ban on acquiring new customers and fined over AED 3.5 million after it was found to have violated Sharia compliance regulations.
In a statement, the Central Bank of the UAE (CBUAE) announced the regulatory action following a series of supervisory examinations. The inspections uncovered the bank’s failure to meet requirements outlined in the Sharia Governance Framework for Islamic banking services, alongside other applicable legal provisions.
The bank has been fined AED 3,502,214 for the non-compliance. The sanctions were imposed under Article 137 of Decretal Federal Law No. (14) of 2018, which governs the regulation of financial institutions in the country.
The CBUAE underscored its firm stance on maintaining the integrity of the banking system. “The Central Bank is committed to ensuring that all licensed financial institutions operating in the UAE comply with the regulations in place to preserve transparency and trust,” it said.
The move is part of the regulator’s broader efforts to ensure financial stability and uphold public confidence in the UAE’s banking sector.
