UAE Central Bank fines foreign bank Dh1.82 million over customer liability letter delay

The Central Bank of the UAE (CBUAE) has imposed a Dh1.82 million penalty on a foreign bank branch for a significant delay in issuing a customer liability letter. The regulator found the bank failed to provide the crucial document within the legally mandated seven calendar days, a breach of the UAE's Market Conduct and Consumer Protection Regulations.

This action highlights the CBUAE's ongoing efforts to bolster consumer rights and enhance transparency within the financial sector. While the identity of the bank was not disclosed, the central bank emphasized its commitment to ensuring all licensed financial institutions adhere strictly to UAE banking laws. A liability letter is an official bank document that outlines a customer's outstanding financial commitments, including loan balances and settlement amounts. It is essential for transactions such as loan transfers, refinancing, and applying for new credit.

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the penalty followed supervisory examinations that revealed the bank branch breached the UAE's Market Conduct and Consumer Protection Regulations and Standards by failing to provide the document within seven calendar days.

The penalty was levied under Federal Decree-Law No. 6 of 2025, which grants the CBUAE broad authority to investigate banks and enforce regulatory standards. Although the number of affected customers and the duration of the delays remain undisclosed, the CBUAE stated that this enforcement action is part of its broader supervisory mandate to ensure fair customer treatment and full regulatory compliance. This fine follows a recent Dh20 million penalty imposed on another foreign bank for repeated failures in anti-money laundering and counter-terrorism financing regulations.

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the action reflects its continued efforts to strengthen consumer rights, improve transparency and ensure all licensed financial institutions comply with UAE banking laws.