Five banks and two insurance companies in the United Arab Emirates have been penalized a total of AED 2.62 million for failing to adhere to tax regulations, as announced by the Central Bank of the UAE (CBUAE) on Tuesday.

The CBUAE reported that the penalties were imposed after the entities did not comply with the required reporting procedures outlined by the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA). The authority emphasized that it had provided the entities with sufficient time to rectify their compliance issues before enforcing the fines.

Through its supervisory and regulatory roles, the CBUAE aims to improve the quality of the financial system in the UAE and to combat tax evasion effectively.