UAE Central Bank imposes sanctions on 8 banks

Sanctions have been imposed on eight banks operating in the UAE for violating the Central Bank's rules and regulations.

The unnamed lenders were pulled up for failing to comply with guidelines on not granting loans or credit facilities to certain beneficiaries.

The decision is based on 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 (NDDSF) facilities.

"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 NDDSF, including credit cards," the Central Bank said in a statement.

It added that the move is part of efforts to safeguard the transparency and integrity of the UAE's financial system and to ensure that all licensed financial institutions operating in the country, including banks, abide by the UAE laws.