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Schedule 2 Penalties and Fees

Penalties and Fees

Every Reporting Financial Institution which fails to comply with a duty or obligation imposed by these Regulations is liable to the penalties and or fees set out in the table below:

No Contravention Penalty / Late Reporting Fee
1.1 A Reporting Financial Institution signs or otherwise positively affirms a false self-certification. AED 25,000 penalty
1.2 A Reporting Financial Institution fails to keep records of the due diligence procedures performed under the Regulations, or fails to keep them for a period of six (6) years pursuant to the requirements of the Regulations. AED 10,000 penalty
1.3 A Reporting Financial Institution fails to apply the due diligence procedures specified in Schedule 1, Part 2 through to Part 7 in Schedule 1. AED 25,000 penalty
1.4 A Reporting Financial Institution fails to report the information required to be reported in terms of these Regulation. AED 10,000 penalty

and

AED 500 Administrative Fee for every day the failure continues up to a maximum amount of AED 90,000 in Administrative Fees
1.5 A Reporting Financial Institution fails to report the information required to be reported in terms of these Regulation in a complete and accurate manner. Minor non-compliance:

AED 1,000 Administrative Fee

and

AED 100 Administration
Fee for every day the failure continues up to of AED 25,000 in Administrative Fees

Significant non-compliance

AED 250,000 penalty
1.6 Penalties and Administrative Fees that remain outstanding for a period of longer than thirty (30) days, or a Reporting Financial Institution fails to perform an action ordered by the Regulatory Authority for a period of longer than thirty (30) days, as the case may be, the Regulatory Authority may serve further default notices in accordance with these Regulations on the said Reporting Financial Institution imposing with each successive notice double the amount of the said penalties and Administrative Fees, provided that each such successive note shall supersede the previous notice served on the Reporting Financial Institution for the same default but any payment made in respect of that previous notice shall be taken into account accordingly. Double the amount of the previous penalty or Administrative Fee, or both, provided that such penalties and Administrative Fees for each contravention shall not exceed an aggregate amount of AED 250,000