The Central Bank of the UAE (CBUAE) has imposed financial sanctions on six banks operating in the UAE, pursuant to Cabinet Resolution No. 9 of 2021, implementing certain provisions of the Organisation for Economic Cooperation and Development (OECD)’s Multilateral Administrative Agreement for Automatic Exchange of Information and Common Reporting Standard (CRS), siad a Wam news agency report.

 

The CRS is a global methodology for the automatic exchange of financial accounts and tax-related information with other financial regulatory organisations across the world through secure channels.

 

It sets out the required information to be exchanged, the types of financial institutions required to report, the different types of financial accounts and account holders in scope, as well as the common due diligence procedures to be followed by financial institutions.

 

The financial sanctions take into account the banks’ failures to achieve appropriate levels of compliance regarding required due diligence and reporting procedures and standards. All banks operating in the UAE have been allowed ample time by the CBUAE to implement the CRS, the report said.

 

The CBUAE is committed to complying with all regulations to strengthen the nation’s financial and banking system. This supports the UAE’s commitment to global initiatives to enhance the integrity and transparency of tax systems and combat tax evasion, the bank said.