By Staff Reporter
Abu Dhabi: The UAE Central Bank (CBUAE) has fined a branch of a foreign bank Dh1.82 million for failing to issue a customer liability letter within the legally required timeframe.
The penalty was imposed under Federal Decree-Law No. 6 of 2025 governing the Central Bank, financial institutions, banking activities, and the insurance sector.
According to the CBUAE, inspections revealed that the bank branch did not provide a liability letter within the mandatory seven-day period, breaching the regulator’s Market Conduct and Consumer Protection Regulations and Standards.
A liability letter is an important banking document that enables customers to settle outstanding loans, transfer financing to another bank, or complete other financial transactions. Delays in issuing the document can hinder customers’ access to banking services and affect financial transparency.
The Central Bank said the sanction reflects its commitment to enforcing compliance with UAE banking laws and consumer protection regulations. It added that banks, their management, and employees are expected to adhere to the regulatory standards designed to promote transparency, accountability, and confidence in the country’s financial system.
The CBUAE did not disclose the identity of the foreign bank branch involved.
