by Waheed Abbas

The Central Bank of the UAE (CBUAE) on Tuesday said it imposed administrative sanctions on eight banks operating in the UAE.

“The administrative sanctions take into account the banks’ failures to comply with the CBUAE’s instructions not to grant any loans or credit facilities to the beneficiaries of loans granted by the Nationals Defaulted Debts Settlement Fund (NDDSF), including credit cards,” the regulator said in a statement on Tuesday.

It said the decision has been taken pursuant to Article 137 of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organisation of Financial Institutions and Activities, and the Central Bank notices regarding the beneficiaries of the Nationals Defaulted Debts Settlement Fund facilities.

The Central Bank said it will ensure that all licensed financial institutions operating in the country, including banks, abide by the UAE laws, regulations and standards adopted by the regulator, to safeguard the transparency and integrity of the banks’ business and enhance the efficiency of the UAE financial system.

The Central Bank has taken a tough stand with regard to the imposition of regulations and laws on financial institutions and exchange houses. Earlier, the Central Bank had also imposed administrative sanctions on exchange houses for not adhering to regulations.

However, the authority did not disclose the names of the eight banks.