The Central Bank of the UAE (CBUAE) has removed the entire board of directors of an insurance company operating locally and replaced it with a temporary committee of experts for six months.
This administrative sanction is imposed in accordance with Article 41 of the Federal Law No. (6) of 2007 on the Regulation of Insurance Operations, the central bank said in a statement on Tuesday, without disclosing either the name of the company or the reasons for the sanctions.
Last week the CBUAE imposed sanctions on eight banks operating in the country over their failure to comply with rules linked to the Nationals Defaulted Debts Settlement Fund (NDDSF), the state news agency reported.
Early this year, the central bank issued guidelines for licensed financial institutions — including banks, finance companies, exchange houses, insurance companies, agents and brokers to combat money laundering and the financing of terrorism, WAM reported.