CBUAE says the branch did not issue a liability letter within the required seven-day timeframe.
Abu Dhabi: The Central Bank of the UAE has fined a foreign bank branch licensed in the country Dh1.82 million.
The regulator said the penalty was imposed under Federal Decree-Law No. 6 of 2025 on the Central Bank, which governs financial institutions, their activities, and the insurance sector.
Liability letter delay
The sanction followed CBUAE examinations, which found that the branch did not issue a liability letter within the required seven-day timeframe.
The Central Bank said the delay breached its Market Conduct and Consumer Protection Regulations and Standards.
A liability letter is typically required by customers when transferring loans, closing accounts, or restructuring banking arrangements, making timely issuance important for ensuring consumer access and maintaining transparency in banking services.
Consumer protection focus
The CBUAE said the action falls under its supervisory and regulatory mandate to ensure that banks, their management, and employees comply with UAE laws and regulatory standards.
The Central Bank added that these rules are designed to protect transparency and uphold integrity across the banking sector and the wider UAE financial system.
The regulator did not disclose the name of the foreign bank branch in its statement.
