On 18 March 2018, the Central Bank introduced the Court Cases Management System, an automated process to facilitate the monitoring of the processing of court orders by stakeholders issued against all Licensed Financial Institutions operating in the UAE. The stakeholders are the courts under the Ministry of Justice, the Dubai Courts, the Ras Al Khaimah Courts and Prosecution and the Rental Disputes Centrel of Dubai.
Despite the introduction of the Court Cases Management System, numerous orders, issued by different courts were not being processed in a timely manner.
To address this matter, on 15 October 2018, the Central Bank issued Notice No. CBUAE/BSD/2018/3004, to inform the banks of their obligations to process court orders within the time limits set out in the Notice.
The Notice also informed the banks that the Central Bank would send reminders about the court orders that become due and would take appropriate measures if no action is taken to comply with the Notice.
Accordingly, failure to comply with the Notice will result in the Central Bank imposing a fine of AED 1,000 per violation against the concerned bank.
A daily rate of AED 1,000 will be applied for the delay of each working day that continues after the violation, with a maximum threshold of AED 50,000 for each violation.