UAE Central Bank Fine: Foreign Bank Penalized AED 1.82 Million Over Customer Service Failures

CBUAE said examinations found the bank branch failed to issue a liability letter within the mandatory seven-day period, violating the central bank’s regulations

The Central Bank of the UAE (CBUAE) has imposed a financial sanction of Dh1.82 million on a branch of a foreign bank operating in the country for failing to comply with consumer protection requirements. The regulator did not disclose the name of the foreign bank branch that was fined.

The penalty was imposed under Federal Decree-Law No. 6 of 2025 concerning the Central Bank, regulation of financial institutions and activities, and insurance business, according to a statement from the regulator.

The CBUAE said examinations found the bank branch failed to issue a liability letter within the mandatory seven-day period, violating the central bank’s Market Conduct and Consumer Protection Regulations and Standards.

A liability letter is required when a customer seeks to transfer liabilities or obtain financing from another financial institution. Banks must issue the document within a set timeframe to facilitate the process and protect consumer rights.

“The financial sanction was imposed following examinations conducted by the CBUAE, which revealed the branch’s failure to issue a liability letter within the mandated seven-day period,” the central bank said in a statement.

Through its supervisory and regulatory mandates, the central bank ensures that banks, their management, and employees comply with UAE laws and the regulations and standards issued by the regulator, it added.

The latest enforcement action is part of the central bank’s ongoing efforts to ensure compliance across the UAE’s banking sector. The CBUAE said it remains committed to maintaining high standards of transparency, integrity, and consumer protection within the country’s financial system.

Source: Khaleejtimes