UAE Central Bank Fines 11 Banks

The UAE has an agenda to strengthen the efforts on anti-money laundering. WAM
The UAE has an agenda to strengthen the efforts on anti-money laundering. WAM
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UAE Central Bank Fines 11 Banks

The UAE has an agenda to strengthen the efforts on anti-money laundering. WAM
The UAE has an agenda to strengthen the efforts on anti-money laundering. WAM

The United Arab Emirates’ central bank (CBUAE) imposed financial sanctions on 11 banks operating in the country for their failure to reach appropriate levels of compliance on anti-money laundering and sanctions.

The regulator imposed AED45.7 million (USD12.4 million) in penalties.

“All banks operating in the UAE have been allowed ample time by the CBUAE to remedy any shortcomings and were instructed in the middle of 2019 to ensure compliance by the end of that year, informing them that further shortcomings would result in penalties under the Federal Decree-Law No. (20) of 2018 and its executive regulation,” the bank said on Sunday.

CBUAE said it will continue to work closely with all financial institutions in the UAE to achieve and maintain high levels of compliance and will continue to impose further administrative and/or financial sanctions, in cases of non-compliance.

The bank held the first Compliance Officers Forum to create a dialogue between the CBUAE and Chief Compliance Officers of all banks to discuss expectations from compliance function and banks’ risk management more generally.

The forum, chaired by Abdulhamid M. Saeed Alahmadi, governor of the UAE Central Bank, was attended by over 100 Chief Compliance Officers and other senior compliance professionals from the banking industry.

The event supports achieving the UAE’s agenda to strengthen the efforts on anti-money laundering and combatting the financing of terrorism.

Alahmadi opened the forum emphasizing the importance of compliance functions and their role in ensuring sound and comprehensive management of all risks faced by banks in the UAE.

The forum addressed several matters mainly highlighting that banks need to assess the scope and skills of their compliance function and properly embed the compliance risk within the overall risk appetite framework.

"The UAE is strongly committed to applying FATF standards to ensure that its financial system is safe and sound. We urge financial institutions to retain their focus on combatting money laundering and financing of terrorism,” Alahmadi said.



Abu Dhabi's XRG Targets Gas, LNG Capacity of 20-25 Million Tons a Year by 2035

Sultan Al Jaber, COP28 President, speaks at the United Nations climate change conference COP29 opening in Baku, Azerbaijan November 11, 2024. REUTERS/Maxim Shemetov/File Photo
Sultan Al Jaber, COP28 President, speaks at the United Nations climate change conference COP29 opening in Baku, Azerbaijan November 11, 2024. REUTERS/Maxim Shemetov/File Photo
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Abu Dhabi's XRG Targets Gas, LNG Capacity of 20-25 Million Tons a Year by 2035

Sultan Al Jaber, COP28 President, speaks at the United Nations climate change conference COP29 opening in Baku, Azerbaijan November 11, 2024. REUTERS/Maxim Shemetov/File Photo
Sultan Al Jaber, COP28 President, speaks at the United Nations climate change conference COP29 opening in Baku, Azerbaijan November 11, 2024. REUTERS/Maxim Shemetov/File Photo

XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC), is aiming to have a gas and LNG business with a capacity of between 20 million and 25 million metric tons a year by 2035, the company said in a statement on Tuesday.

XRG was set up last year as an investment company focused on lower-carbon energy, gas and chemicals, with assets of more than $80 billion.

On Tuesday, its board, whose members include former BP CEO Bernard Looney and Blackstone's Jon Gray, approved the capacity target and a new five-year business plan.

Board members also supported the assessment of potential gas acquisitions and LNG opportunities in North America, Reuters reported.

ADNOC's current US investments already sit under XRG, and the oil giant's Chief Executive Sultan Al Jaber said in March that XRG would make a significant investment in US natural gas in coming months.

XRG has also changed the name of its low carbon energies platform to Energy Solutions to reflect the full scope of the company's strategy, including energy demand linked to artificial intelligence and the digital economy, a company spokesperson said on Tuesday.

The board "endorsed the company's ambition to create a top three global chemicals platform," XRG said.

ADNOC had agreed in October to buy German chemicals maker Covestro for 14.7 billion euros ($16.73 billion) including debt. Jaber later said it would sit under XRG.