CBUAE Cancels License of First Insurance Brokers Company

Dubai, January 12, 2024 - Regulatory Action against Cogent Insurance Broker

The Central Bank of the United Arab Emirates (CBUAE) has taken a significant step in maintaining financial stability and protecting consumers’ interests by cancelling the license and registration of Cogent Insurance Broker, a leading insurance broking firm in the country.

Regulatory Breaches Identified

According to sources, the regulator had been monitoring the company’s activities closely and found several breaches of regulatory requirements. This move is part of the CBUAE’s efforts to ensure that all financial institutions operating in the UAE adhere to strict regulatory standards.

Administrative Sanctions Imposed on Eight Banks

In another development, the CBUAE has imposed administrative sanctions on eight banks operating in the UAE for failing to comply with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations. These measures are aimed at ensuring that all financial institutions operating in the country adhere to strict regulatory standards.

Regulatory Actions against Insurance Company and Finance Companies

The CBUAE has also removed the board of directors of an insurance company and imposed financial sanctions on several exchange houses and finance companies for similar breaches. These actions demonstrate the regulator’s commitment to maintaining a robust regulatory framework and protecting the integrity of the UAE’s financial system.

National Summit on Counter-Terrorist Financing and Sanctions

In a separate development, the CBUAE hosted its 2024 National Summit on Counter-Terrorist Financing and Sanctions last month, which brought together experts from around the world to discuss key issues related to AML/CFT. The summit aimed to promote international cooperation and knowledge sharing in combating financial terrorism.

New Guidance for Licensed Financial Institutions

The CBUAE has also issued new guidance for licensed financial institutions on transaction monitoring and sanctions screening to ensure that they are equipped to effectively identify and report suspicious transactions. These measures demonstrate the regulator’s commitment to maintaining a robust regulatory framework and protecting the integrity of the UAE’s financial system.

Conclusion

These regulatory actions by the CBUAE demonstrate its commitment to ensuring the stability, security, and integrity of the UAE’s financial system. The regulator will continue to monitor financial institutions closely to prevent and detect any breaches of regulatory requirements.