Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, has issued Executive Council Resolution No. (101) of 2024 to regulate the operations of foreign banks in the emirate.
The resolution establishes measures to flag non-compliant foreign banks and specifies penalties for breaches of administrative guidelines.
The newly issued resolution aims to enhance compliance within the banking sector by outlining administrative violations and associated fines for foreign banks operating in Dubai.
With the resolution, Dubai seeks to enhance compliance among banking sector institutions by establishing robust standards for responsible governance within the banking system.
The resolution will be published in the Official Gazette and will be effective from the date of its publication.
Earlier in March, Dubai issued a law imposing a 20% annual levy on foreign banks, except those domiciled in the Dubai International Financial Centre (DIFC).
The law governs the calculation of taxable income as well as tax filing and payments. It will also regulate the procedures for auditing tax filing and voluntary disclosure as well as responsibilities and procedures related to tax auditing.
Foreign banks that violate the law face a stiff penalty that does not exceed AED 500,000. The fine will be doubled in case of repeat violations within two years up to a maximum of AED 1 million.
