On Tuesday, the Central Bank of the UAE (CBUAE) imposed administrative sanctions on eight banks.

“A statement from the regulator said in a statement on Tuesday that the administrative sanctions are based on the failure of the banks to comply with the CBUAE's instructions not to grant any credit or loans to beneficiaries of the Nationals Defaulted Debt Settlement Fund (NDDSF), including credit cards.

A decision was made in accordance with Article 137 of Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organisation of Financial Institutions and Activities, as well as notices from the Central Bank regarding beneficiaries of the Nationals Defaulted Debt Settlement Fund.

In order to maintain the transparency and integrity of banks' business and enhance the efficiency of the UAE financial system, the Central Bank said it would ensure that all licensed financial institutions operating in the country, including banks, abide by UAE laws, regulations and standards adopted by the regulator.

In terms of imposing regulations and laws on financial institutions and exchange houses, the Central Bank has taken a tough stance. Earlier, the Central Bank had also imposed administrative sanctions on exchange houses for not adhering to regulations.

The authorities, however, did not reveal the names of the eight banks.