ABU DHABI: Banking group Standard Chartered Plc is liable to legal action in the UAE after it agreed to close some customers’ UAE accounts in an anti-money laundering settlement with US regulators, the UAE central bank said.
Under the settlement, announced on Tuesday, the bank agreed to pay a $300 million fine, end high-risk relationships with small- and medium-sized business clients in the UAE, and suspend the processing of dollar-denominated payments for some clients at its Hong Kong unit.
The threat of further legal action in the UAE is a further complication for StanChart Chief Executive Peter Sands, who is fighting to retain the backing of investors after a series of transgressions and a decline in the bank’s earnings.
“We have noted the announcement made by the UAE Central Bank. We always work with our regulators to achieve the right outcomes,” the lender said in an e-mailed statement.
Shares in the bank were down 1 percent by 1415 GMT.
In the UAE, between 1,400 and 8,000 Standard Chartered accounts are expected to be affected, the central bank said, adding that it would examine every account to identify any violations.
The British-based bank will be liable to legal action by the account owners “because of the material and moral damage which is falling on them,” the central bank said.
It added that its Consumer Protection Unit was willing to consider complaints from affected account holders. However it did not say if it believed any action was likely by account holders.
The central bank said that while Standard Chartered had not fulfilled US regulatory requirements, its UAE branches had committed “no significant violations” of international money laundering rules, such as the standards of the Financial Action Task Force, an inter-governmental body.
Standard Chartered said on Tuesday, after the settlement was announced, that it was in any case seeking to leave the business of serving small- and medium-sized clients in the UAE as part of a broad effort to sharpen its strategic focus.
“The UAE remains one of Standard Chartered’s leading franchises globally and the move does not reflect a decreased focus on the country,” it said in a statement.
The UAE, including Dubai, is the top financial hub in the Middle East and like other banking centers, has been under pressure from Washington to crack down on money-laundering as well as sanctions-busting by Iranian businesses.
In 2011 Dubai-based Noor Islamic Bank, since re-named Noor Bank, halted a business in which it channelled billions of dollars from Iranian oil sales through its accounts, as Washington stepped up sanctions over Iran’s disputed nuclear plans.
In May last year, the UAE revoked the licenses of two local money exchange companies for non-compliance with regulations including rules against money laundering.
StanChart liable to legal action: UAE central bank
StanChart liable to legal action: UAE central bank
Saudi POS spending jumps 28% in final week of Jan: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending climbed sharply in the final week of January, rising nearly 28 percent from the previous week as consumer outlays increased across almost all sectors.
POS transactions reached SR16 billion ($4.27 billion) in the week ending Jan. 31, up 27.8 percent week on week, according to the Saudi Central Bank. Transaction volumes rose 16.5 percent to 248.8 million, reflecting stronger retail and service activity.
Spending on jewelry saw the biggest uptick at 55.5 percent to SR613.69 million, followed by laundry services which saw a 44.4 percent increase to SR62.83 million.
Expenditure on personal care rose 29.1 percent, while outlays on books and stationery increased 5.1 percent. Hotel spending climbed 7.4 percent to SR377.1 million.
Further gains were recorded across other categories. Spending in pharmacies and medical supplies rose 33.4 percent to SR259.19 million, while medical services increased 13.7 percent to SR515.44 million.
Food and beverage spending surged 38.6 percent to SR2.6 billion, accounting for the largest share of total POS value. Restaurants and cafes followed with a 20.4 percent increase to SR1.81 billion. Apparel and clothing spending rose 35.4 percent to SR1.33 billion, representing the third-largest share during the week.
The Kingdom’s key urban centers mirrored the national surge. Riyadh, which accounted for the largest share of total POS spending, saw a 22 percent rise to SR5.44 billion from SR4.46 billion the previous week. The number of transactions in the capital reached 78.6 million, up 13.8 percent week on week.
In Jeddah, transaction values increased 23.7 percent to SR2.16 billion, while Dammam reported a 22.2 percent rise to SR783.06 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
