UAE President issues new law on Central Bank, financial entities

UAE promulgated a federal law by the President of the UAE on the Central Bank, and Regulation of Financial Institutions and Insurance Business .

The UAE President Sheikh Mohamed bin Zayed Al Nahyan issued the law included several articles which is as follows..

• Authorized financial institutions must make sure to provide all members of the community with access to suitable banking and financial services in order to support efforts in the digital transformation and financial services innovation.

• Consumers will be better protected by combining the services that assist with resolving complaints and disputes involving banks and insurance companies clients.

• Taking the necessary proactive measures for early intervention and settlement to remedy any indications of financial instability in a licensed financial institution.

• Raising the administrative fine to a level that is in line with the seriousness of the breach and the size of the trades up to ten times the value of the breach.

• Automatic deduction of fines with the facility of reconciling before the issuance of the final judicial ruling on penalties and publication of their settlement in the Central Bank’s official portal.

• Uphold the stability of the national currency, encourage and ensure the stability of the financial system and the prudent management of foreign exchange reserves.

• Licensed financial companies are required to obtain and maintain sufficient guarantees for all types of facilities granted to natural persons and sole proprietorships customers.

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