Six banks operating in the UAE have been fined for failing to comply with the OECD’s Multilateral Administrative Agreement for Automatic Exchange of Information and Common Reporting Standard (CRS) according to a Central Bank of the UAE (CBUAE) statement.
The CRS is a global methodology for the automatic exchange of financial accounts and tax-related information with other financial regulatory organisations across the world through secure channels.
Compliance failures
The reporting standard sets out the required information to be exchanged, the types of financial institutions required to report, the different types of financial accounts and account holders in scope, as well as the common due diligence procedures to be followed by financial institutions.
The financial sanctions imposed on the six banks, which CBUAE has not identified, take into account the banks’ failures to achieve appropriate levels of compliance regarding required due diligence and reporting procedures and standards.
Strengthening compliance
All banks operating in the UAE have been allowed ample time to implement the CRS the CBUAE says.
Banks’ CRS compliance has been tracked as part of the central bank’s efforts to strengthen the country’s financial and banking system.
In March, the UAE was placed on the Financial Action Task Force (FATF) grey list of jurisdictions with “strategic deficiencies” in their anti-money laundering and counter financing of terrorism (AML/CFT) regime.
Categories: Trade Based Financial crimes News
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