UAE Central Bank fines foreign bank branch AED 1.82m over delay in issuing debt certificate
UAE Central Bank fines a licensed foreign bank branch AED 1.82m for failing to issue a debt certificate within seven days, citing market conduct breaches.
The UAE Central Bank has imposed a financial penalty of AED 1.82 million on a licensed branch of a foreign bank operating in the country after a routine inspection found procedural shortcomings. The penalty follows a determination that the branch did not issue a required debt certificate within the seven-day period mandated by the regulator. The fine was levied under the provisions of Federal Decree-Law No. (6) of 2025, which governs the Central Bank and the regulation of financial and insurance activities.
Details of the inspection that led to the penalty
The Central Bank’s supervisory team carried out on-site and desk-based reviews that examined the branch’s compliance with market conduct and consumer protection obligations. Inspectors concluded the branch failed to produce the debt certificate within the regulator’s seven-day timeline, a lapse that the bank considered a breach of the applicable rules. The regulator therefore classified the failure as a contravention of the standards established to protect customers and ensure fair market behaviour.
Regulatory breach: failure to issue debt certificate within seven days
Under the Central Bank’s market conduct framework, certain documentation must be issued to customers within specific deadlines to ensure transparency and clarity in customer relationships. The branch’s missed deadline for issuing the debt certificate was identified as the primary compliance shortfall. The Central Bank determined that the failure represented a tangible risk to consumer rights and a breach of established procedures.
Legal basis: Federal Decree-Law No. (6) of 2025 cited
The fine was imposed pursuant to Federal Decree-Law No. (6) of 2025 concerning the Central Bank and the organisation of financial and insurance institutions and activities. That decree-law provides the regulator with enforcement powers to sanction institutions that do not comply with statutory and regulatory obligations. The Central Bank’s action reflects the law’s intent to strengthen oversight and to hold licensed entities accountable for operational and conduct failures.
Central Bank’s stated supervisory priorities
The Central Bank emphasises that its supervisory remit includes protecting consumers, preserving market integrity, and safeguarding the stability of the financial system. Enforcement measures, such as monetary penalties, are used to deter lapses and to compel remedial action where deficiencies are discovered. The regulator has signalled that consistent application of rules is central to maintaining public confidence in the banking sector.
Implications for other licensed banks and branches
The enforcement action serves as a reminder to all licensed banks and foreign branches operating in the UAE to review internal controls and compliance workflows. Institutions are expected to ensure that customer-facing documentation processes meet the Central Bank’s timeframes and disclosure standards. Failure to do so can result in financial penalties, regulatory restrictions, or further supervisory intervention depending on the severity and recurrence of breaches.
Potential follow-up and required remedial measures
Following the imposition of the fine, the Central Bank typically requires affected institutions to submit remediation plans and evidence of corrective measures. These may include updating internal procedures, staff training on regulatory timelines, and enhancements to recordkeeping systems to prevent recurrence. The regulator may monitor compliance progress and, if necessary, carry out follow-up inspections to verify implementation.
The Central Bank’s enforcement reinforces the regulator’s commitment to rigorous oversight of conduct and consumer protection within the UAE’s banking sector. Licensed banks and their branches are being reminded to prioritise timely issuance of customer documentation and to align operational practices with the standards set under Federal Decree-Law No. (6) of 2025.
