ABU DHABI: A debate is gaining traction in the UAE’s financial sector over whether the regulators including the Central Bank of the UAE (CBUAE) should disclose the names of institutions penalised for regulatory violations.
The discussion takes on greater significance as the financial services industry intensifies efforts to enhance transparency and strengthen governance. Around the world, central banks are becoming more forthcoming in their approach, not only in enforcing regulations but also in openly communicating their stance on financial oversight and compliance.
The latest discussion was sparked by a recent CBUAE announcement stating that it had imposed financial sanctions totaling AED2.62 million ($713,310) on five banks and two insurance companies for non-compliance with the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) guidelines.
However, the regulator withheld the names of the affected institutions, triggering mixed reactions from industry experts.
Some financial professionals defend the central bank’s stance, arguing that revealing names could cause undue panic or reputational harm beyond the intended regulatory correction. “Regulators may choose discretion to maintain financial stability, preventing unnecessary speculation or market disruption,” said a senior executive at a Dubai-based bank while talking to businessbenchmark.news.
However, others believe transparency should take precedence. “Naming the institutions ensures accountability and reinforces the UAE’s commitment to financial compliance,” said a former banker now based in India.
He added that disclosure would prevent speculation, uphold trust in the financial system, and allow customers and investors to make informed decisions.
As the debate unfolds, the balance between financial stability and transparency remains a pressing question for regulators and industry stakeholders alike
