CBUAE sanctions 5 insurance brokers for flouting money-laundering laws

The Central Bank of the UAE (CBUAE) has imposed administrative and financial sanctions on five insurance brokers operating in the UAE, pursuant to Article I4) of the Decree Federal Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations.

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The imposition of the sanctions results from the companies' failure to comply in its Anti-money Laundering and Combating the Financing of Terrorism and Illegal Organisations and Sanctions framework and related sanctions.

The sanctions included financial penalty on two insurance brokers while the remaining three received an official warning.

The CBUAE, through its supervisory and regulatory mandates, works to ensure that all insurance brokers and insurance-related professions, abide by the UAE laws, regulations and standards adopted by the CBUAE to safeguard the transparency and integrity of the insurance industry and the UAE financial system.

In August last year, the Government of the United Arab Emirates has issued a Federal Decree-Law amending some provisions of the Federal Decree-Law on Anti-Money Laundering and Combating the Financing of Terrorism and Financing of Illegal Organizations.

In line with the ongoing development of the legislative and legal system, the Decree aims to, further, advance the legal framework supporting the efforts of the country’s relevant authorities in charge of combating financial crimes.

It also aims to consolidate the UAE's technical compliance within international recommendations and treaties in the matter.

Additionally, the decree aligns with the national strategy launched to protect the local financial ecosystem, by implementing ground-breaking standards to counter crimes that adversely affect the countries’ economies.