UAE Central Bank Fines Foreign Bank Branch Dh1.82 Million Over Delayed Liability Letter

The Central Bank of the UAE has imposed a financial penalty of Dh1.82 million on a branch of a foreign bank licensed to operate in the country, after finding it failed to issue a liability letter within the mandated seven-day period. The regulator said the sanction was issued under the federal law governing the central bank and the regulation of financial institutions and insurance business, and followed examinations that identified the delay as a violation of its Market Conduct and Consumer Protection Regulations and Standards. A liability letter is commonly required when customers move loans, settle outstanding balances or transfer their banking arrangements, so timely issuance is important for consumer access, transparency and the ability to switch providers. The central bank did not name the institution involved. It said the action falls within its supervisory and regulatory mandate to ensure that banks, their leadership and employees comply with UAE laws and the standards it sets. The penalty is the latest example of the regulator using its enforcement powers to reinforce consumer-protection obligations across the banking sector, signalling that procedural failures affecting customers can carry meaningful financial consequences.