If a financial institution breaches the regulations relating to terrorist financing, what is the maximum...

The CISI UAE Financial Rules and Regulations sets out a range of administrative sanctions that may be imposed on financial institutions and designated non-financial businesses and professions that violate the AML/CFT legislation. These sanctions include warnings, restrictions on individuals working within the relevant sector, limitations on the powers of directors or senior management, and financial penalties. For each violation concerning money laundering or terrorist financing requirements, the administrative financial penalty may range from AED 50,000 up to AED 5,000,000 . The amount imposed will depend on the nature and seriousness of the breach and the supervisory authority's assessment of the circumstances. This administrative sanction must be distinguished from criminal penalties that may apply where a person actually commits terrorist financing or money laundering. The question asks specifically for the maximum administrative penalty per violation , not a criminal fine. Therefore, AED 1 million, AED 2 million and AED 3 million are all below the prescribed maximum. The correct answer is AED 5 million.

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