In a significant move to regulate foreign banking operations within the Emirate, the Executive Council has issued Dubai Executive Council Decision No. 101/2024.

This decision, effective immediately upon its publication in the Official Gazette, outlines a comprehensive framework for administrative violations and fines applicable to foreign banks operating in Dubai.

The decision, rooted in the provisions of Dubai Law No. 1/2024 on the taxation of foreign banks, aims to ensure compliance with financial regulations and enhance transparency within the sector.

It stipulates a range of fines for various administrative violations, with penalties escalating for repeated offences.

Key provisions include fines for delays in submitting tax returns and supporting documents, with penalties set at AED 1,000 for each day of delay.

More severe violations, such as submitting falsified documents, incur fines of AED 20,000 per incident.

Additionally, banks failing to report changes in contact information or the suspension of operations face fines of AED 20,000.

The decision also mandates that all fines collected will be directed to the Public Treasury of the Dubai Government, reinforcing the commitment to fiscal responsibility and governance.

This regulatory update underscores Dubai’s dedication to maintaining a robust and compliant financial environment, aligning with international standards and fostering a transparent banking sector.

The decision is part of a broader strategy to enhance the Emirate’s financial regulatory framework, ensuring that foreign banks comply with local laws and contribute positively to Dubai’s economic landscape.

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