CBUAE suspends new Islamic Banking customers at UAE Bank for 6 months

The Central Bank of the UAE has suspended the onboarding of new customers on the Islamic Window of a bank operating in the UAE, for six months and imposed a financial sanction of AED3,502,214 ($953,000).

The move adheres to Article 137 of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organisation of Financial Institutions and Activities, and its amendments.

The sanctions result from the Central Bank’s Sharia supervision examinations, which revealed the bank’s non-compliance with the instructions related to Sharia’ Governance of the Islamic Window and the provisions of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organisation of Financial Institutions and Activities, and its amendments.

UAE Islamic Banking sanction

The CBUAE, through its supervisory and regulatory mandates, endeavours to ensure that all banks and their staff, abide by the country’s laws, regulations and standards established by the Central Bank to maintain transparency and integrity of the banking sector and safeguard the financial system.