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

The Central Bank of the UAE has imposed a financial sanction of Dh1.82 million on a branch of a foreign bank licensed to operate in the country, after examinations found the branch failed to issue a liability letter within the seven-day period required by regulation. A liability letter sets out a customer's outstanding obligations to a bank and is commonly needed when moving a loan to another lender, settling liabilities or transferring banking arrangements, making its timely issuance important for consumer mobility and transparency. The regulator said the delay violated its Market Conduct and Consumer Protection Regulations and Standards, and that the penalty was issued under Federal Decree-Law No. 6 of 2025 governing the central bank, the regulation of financial institutions and activities, and insurance business. The central bank did not name the institution involved. The action reflects a broader pattern of stepped-up enforcement in the UAE, where a consolidated central bank law has expanded supervisory powers, raised the maximum administrative fine substantially and granted the regulator authority to publish enforcement decisions, including the names of institutions and individuals involved.