The Central Bank of the UAE has asked lenders and other financial institutions in the UAE to search and freeze the accounts, deposits or investments of individuals or entities identified as terrorists or terrorist organisations.

The regulator asked for a thorough investigation of the financial system in a circular, which was followed by another directive advising banks and other financial institutions operating in the UAE to apply enhanced due diligence for any accounts they hold belonging to six Qatari banks.

The two circulars were issued based upon the UAE Cabinet’s resolution designating 59 individuals and 12 entities as terrorists or terrorist organisations, according to a central bank press statement carried by the UAE’s official news agency Wam.

The Qatari lenders, Qatar Islamic Bank, Qatar International Islamic Bank, Barwa, Masraf al-Rayan, Qatar National Bank and Doha Bank, have been identified as financial institutions that have held accounts for sanctioned individuals and entities.

The central bank move follows growing political tensions within the six-member GCC economic bloc, which accounts for about a third of the world’s proven oil reserves. On 5 June, Saudi Arabia, Egypt, the UAE and Bahrain severed diplomatic links with Qatar. The four countries have accused Qatar of funding terrorism and fuelling instability in the region, allegations the gas-rich peninsular nation has denied.

A blockade has also been imposed, with Saudi Arabia closing Qatar’s only land border, and the three GCC states closing their airspace and cutting direct shipping services. They have also said Qatari nationals should leave their respective countries.