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UAE imposes sanctions on 8 banks for failure to comply with NDDSF rules
The UAE Central Bank imposed administrative sanctions on eight banks over their failure to comply with rules linked to the Nationals Defaulted Debts Settlement Fund (NDDSF).
The sanctions were imposed as per Article 137 of Federal Law (14) of 2018, the state-run Emirates News Agency (WAM) reported on Tuesday.
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“The administrative sanctions take into account the banks’ failures to comply with the CBUAE’s instructions not to grant any loans or credit facilities to the beneficiaries of loans granted by the NDDSF, including credit cards,” the report said.
The banks were not named, and the report did not expand on the details of the sanctions.
The fund was launched by the former UAE ruler Sheikh Khalifa on December 2, 2011, on the occasion of the 40th National Day. The fund was initially allocated AED 10 billion, with the purpose of reliving the debt of Emirati nationals.
In 2022, ahead of the country’s 51st National Day, the UAE president ordered banks to wipe out more than $145 million of debt (AED536 million) for Emiratis.
The fund announced that 17 banks and financial institutions had waived the debts of 1,214 Emirati citizens.
Information supplied online by the UAE government about the scheme said: “Banks write off half of the outstanding amount and the other half is bailed out by the government. Banks then collect the money from their customers and pass it back to the government. Those who are helped by the fund are banned from borrowing any more money from banks in the UAE until the obligation is settled.”
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