The Central Bank of the UAE has imposed penalties on six banks in the country for failing to comply with a reporting requirement related to tax evasion.
The regulator said the sanctions were in line with the country’s obligation to certain provisions of a multilateral agreement for Organisation for Economic Cooperation and Development (OECD) members.
The provision refers to banks implementing the Common Reporting Standard (CRS), which is a reporting requirement to help fight against tax evasion.
Banks in the UAE were given “ample time” to implement the CRS, but the Emirati regular said these banks, which it did not name, were not able to comply.
“The financial sanctions take into account the banks’ failures to achieve appropriate levels of compliance regarding required due diligence and reporting procedures and standards,” the central bank said in a statement.
It comes after the central bank also imposed a monetary fine on an unnamed exchange house in the UAE.
The exchange house was fined a sum of AED5.2 million ($1.4 million) for a “weak compliance framework.”
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