CBUAE issues statement regarding Abu Dhabi MTS Bank branch

The Central Bank of the UAE (CBUAE) reviewed the statement regarding the new sanctions package on the Russian Federation, including sanctions imposed on MTS bank.

The statement concludes the following:

The Central Bank issued a license to MTS bank to open a branch in Abu Dhabi, in accordance with the approved licensing procedures after the bank fulfilled the criteria for licensing branches of foreign banks.

The bank benefited legitimate trade between the two countries and servicing the Russian community in the UAE, under the supervision of the Central Bank.
The Central Bank tested the related electronic systems before the bank started its operations in the UAE, in accordance with the requirements of licensing banks to operate in the UAE. 

Due to the circumstances that the country of the bank's headquarters is going through, the Central Bank supervised the trade finance related transactions that exceed certain threshold.

The Central Bank is currently studying the available options regarding the bank's new status, and a corresponding decision will be made in due course, considering the obligations assumed by the branch in the previous period.

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(WAM, February 24, 2023)