KHALEEJ TIMES, Saturday, May 27, 2023 | Thul-Qidah 7, 1444
UAE Central Bank removes insurance company's board of directors for violating laws
The Central Bank of the UAE (CBUAE) on Tuesday announced the removal of
the board of directors of an insurance company and replaced it with a temporary
committee of experts for six months for not adhering to the local laws.
This administrative sanction is imposed in accordance with Article 41 of Federal
Law No. (6) of 2007 on the Regulation of Insurance Operations.
This is the first instance that the regulator has removed the board of a company
for violating the laws. However, it didn’t disclose the name of the company and
details about the violations.
The newly-appointed committee will carry out business and dispositions on behalf
of the company in accordance with its mandate.
In December, the Central Bank cancelled the registration of BH Insurance
Brokerage under the applicable insurance brokers’ regulations.
In June 2022, it imposed an administrative sanction on two insurance companies
for failure to meet its regulatory obligations. One of the firms was prohibited
from issuing additional insurance policies to new customers for one year.
On May 16, the Central Bank imposed administrative sanctions on eight banks in
the UAE for failures to comply with its instructions not to grant any loans or
credit facilities to the beneficiaries of loans granted by the Nationals
Defaulted Debts Settlement Fund (NDDSF), including credit cards.
The Central Bank said it will ensure that all insurance companies and
professions comply with the UAE laws and regulations adopted by the regulator,
to safeguard the transparency.