To: Licensed Financial Institutions, Insurance Companies and Insurance-Related Professionals

Subject: Administrative and Financial Penalties for Emiratization Violations Regulation

Introduction

In implementation of the Emiratization strategies and targets in the banking, financial and insurance sectors in the United Arab Emirates, the Central Bank of UAE has been mandated with establishing and implementing Emiratization strategies, targets and initiatives, and the adequate mechanisms to monitor the adherence of the Licensed Institutions to the same.

The Central Bank mandate also involves the continuance and ongoing collection of contributions from the Licensed Institutions and the management and disbursement of these funds for Emiratization and fulfilling the qualifications of cadres within these sectors.

This includes establishing adequate mechanisms to monitor the Licensed Institutions’ compliance with these strategies and initiatives; and imposing administrative penalties and sanctions, as deemed appropriate, on the Licensed Institutions. The monies collected from such penalties and sanctions will be used for Emiratization in the banking, financial and insurance sectors and qualifying and training the Nationals in these sectors, with the exception of the amounts transferred to NAFIS according to the prevailing legislation in this regard.