Which of the following is an administrative penalty that can be imposed on financial institutions that violate the law and regulations in relation to money laundering and terrorism financing?
A.
A penalty of no less than AED 5,000 and no more than AED 1,000,000 for each violation
B.
A penalty of no less than AED 15,000 and no more than AED 5,000,000 for each violation
C.
A penalty of no less than AED 50,000 and no more than AED 5,000,000 for each violation
D.
A penalty of no less than AED 100,000 and no more than AED 10,000,000 for each violation
Under Federal Law No. 20 of 2018 and CISI UAE Financial Rules and Regulations, financial institutions that violate anti-money laundering (AML) and counter-terrorism financing (CTF) laws may be subjected to administrative penalties ranging from no less than AED 50,000 and no more than AED 5,000,000 for each violation. These substantial fines underscore the UAE’s commitment to stringent AML/CTF enforcement and deterrence. Administrative penalties are imposed alongside other measures such as corrective actions and possible criminal sanctions, ensuring comprehensive regulatory oversight.
[Reference: CISI UAE Financial Rules and Regulations — AML Enforcement and Penalties, Section 8.5.4 (2023)., ]
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