Because standbys and demand guarantees often contain automatic extension clauses, ICC Opinion TA954 offers important lessons for practice and the need for sound drafting of such clauses.
The Central Bank of the UAE (CBUAE) has assessed a AED 19.5 million (USD 5.3m) financial sanction against a bank operating in the UAE for “the bank’s failure to achieve appropriate levels of compliance in its AML & Sanctions Compliance Frameworks for an extended period of time.”
Previously, CBUAE had imposed monitoring on the bank to require the appointment of a consultant to take necessary urgent action to reach compliance standards. In a 14 December 2021 public release announcing its enforcement, CBUAE does not name the bank.
