At least six banks operating in the UAE are facing financial sanctions for failure to comply with reporting standards, the central bank revealed on Thursday.
The sanctions imposed on the lenders, which have not been identified, are in line with government efforts to boost the integrity and transparency of the country's tax systems and fight tax evasion.
They are pursuant to Cabinet Resolution No. 9 of 2021, which is related to the Organisation for Economic Cooperation and Development (OECD)'s Multilateral Administrative Agreement for Automatic Exchange of Information and Common Reporting Standard (CRS).
The banking authority did not specify the sanctions it had imposed on the non-complying banks.
"The financial sanctions take into account the banks' failures to achieve appropriate levels of compliance regarding required due diligence and reporting procedures and standards," the Central Bank of the UAE (CBUAE) said.
"All banks operating in the UAE have been allowed ample time by the CBUAE to implement the CRS," it noted.
Banks' CRS compliance has been tracked as part of the central bank's efforts to strengthen the country's financial and banking system.
(Writing by Cleofe Maceda; editing by Seban Scaria)