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UAE Bank Banned from Taking New Customers for 6 Months

The Central Bank of the UAE penalised a local bank for violating Islamic finance rules, suspending it from onboarding new clients.

  • Publish date: Thursday، 26 June 2025
UAE Bank Banned from Taking New Customers for 6 Months

A UAE-based bank has been barred from accepting new customers for six months after breaking Sharia governance rules that apply to Islamic banking. The Central Bank of the UAE (CBUAE) issued the decision following an investigation and also slapped the bank with a fine of Dh3.5 million.

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Central Bank Found Compliance Failures

According to the Central Bank, a regulatory review uncovered major lapses in the bank’s adherence to Sharia requirements. These included violations of the Sharia Governance Framework, which outlines how Islamic financial services should be run in the country.

The decision was made under Article 137 of the Decretal Federal Law No. 14 of 2018, which governs the operations of financial institutions in the UAE.

UAE Central Bank suspends bank

What This Means for Customers

The six-month ban means the bank cannot open new accounts or onboard new clients during this period. However, existing customers will not be affected, and the bank will continue its normal operations for them.

Central Bank Reinforces Compliance Standards

The CBUAE stressed its commitment to maintaining integrity and transparency in the banking sector. It warned that all licensed financial institutions are expected to follow the legal standards in place and that non-compliance will result in firm action.

This move is part of the Central Bank's broader efforts to strengthen regulatory oversight and protect the stability of the UAE’s financial system.

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