The Central Bank of the UAE has fined the local branch of a foreign bank AED 200 million for serious and repeated breaches of anti-money laundering regulations, weaknesses in its corporate governance framework and failure to comply with regulatory requirements.

According to Khaleej Times, supervisory inspections by the Central Bank of the UAE uncovered significant and recurring deficiencies in the branch’s frameworks for combating money laundering and the financing of terrorism and illegal organisations, as well as in corporate governance, compliance management and sanctions implementation.

In addition to the AED 200 million fine imposed on the foreign bank branch, its chief executive was fined AED 500,000, while its head of compliance and money laundering reporting officer was fined AED 300,000.

The Central Bank of the UAE said the individual penalties were imposed because the executives had failed to fulfil their legal and professional duties and responsibilities.

The measures were taken under the federal law governing the Central Bank of the UAE and the regulation of financial institutions and activities, as amended.

The foreign bank has also been ordered to implement a mandatory remediation programme to address the identified deficiencies. The programme’s implementation must be validated by an independent body.

The Central Bank of the UAE also ordered a fresh assessment of the fitness and propriety of the bank’s chief executive and chief compliance officer to determine whether they may continue in their roles.

The regulator said it would continue monitoring banks, their senior executives and employees to ensure compliance with UAE laws and regulatory standards and to safeguard the transparency and integrity of the country’s banking and financial system.

The Central Bank of the UAE did not identify the foreign bank subject to the penalty in its official statement.

Separate review of Banque Misr branches in the UAE

In a separate case, the Central Bank of the UAE ordered an immediate review of Banque Misr’s branches in the country in August 2026. The move followed a proposal by US authorities to impose special restrictions on the Egyptian bank’s UAE branches over money laundering concerns.

On August 28, the US Treasury Department’s Financial Crimes Enforcement Network said it had identified Banque Misr’s UAE branches as a foreign financial institution of primary money laundering concern. It proposed restricting the branches’ access to correspondent accounts at US financial institutions.

In response, the Central Bank of the UAE said it had reviewed the US authorities’ notice and was assessing its potential implications, including options concerning the continued operation of Banque Misr’s branches in the UAE.

The regulator also stressed that Banque Misr’s UAE branches remained subject to the country’s laws and regulations, and that all banks licensed to operate in the UAE must ensure their activities do not jeopardise the reputation and standing of the national financial system.

In its statement on the AED 200 million fine, the Central Bank of the UAE did not indicate any link between the penalty and the review of Banque Misr’s branches.