The Central Bank of the United Arab Emirates (CBUAE) has imposed financial sanctions totalling Dh2.62 million on five banks and two insurance companies for non-compliance with the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA). These measures address deficiencies in due diligence and financial reporting accuracy.
The CRS, developed by the Organisation for Economic Co-operation and Development (OECD), mandates the automatic exchange of financial account information between jurisdictions to combat tax evasion. FATCA, enacted by the US, requires foreign financial institutions to report information on accounts held by US taxpayers. The UAE has implemented these standards to enhance financial transparency and align with international tax compliance efforts.
Despite being granted sufficient time to rectify compliance issues, the sanctioned institutions failed to meet the required standards.
The CBUAE continues to monitor and enforce compliance among licensed financial institutions to safeguard the financial system’s quality and reliability.
