Regulators of banks and financial free zones in the UAE have jointly issued guidelines to help financial institutions safely adopt enabling technologies as the Covid-19 hastens digitisation.
The guidelines were issued by the Central Bank of the UAE (CBUAE), the Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA) of the Dubai International Financial Centre (DIFC) and the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).
The guidelines set out best practices for financial institutions when adopting enabling technologies such as application programming interfaces, which allow FinTechs to work with banks’ software; Big Data analytics; artificial intelligence; biometrics; cloud computing and distributed ledger technology.
These are expected to help banks and other financial services companies proactively and appropriately manage risks arising from introduction of technology, the regulators said.
"Through the guidelines, we aim to direct licensed financial institutions to adopt technologies that enable modern financial services and promote innovation," said Saif Al Dhaheri, assistant governor – strategy, financial infrastructure and digital transformation at the central bank.
"These guidelines reflect the central bank's keenness to team up with regulatory authorities in various fields, including issuing unified and common guidelines to achieve the growth of the UAE’s economic sectors.”
The issuance of the final guidelines follows a public consultation that was launched in June 2021 as regulators sought to bolster protection of investors.
Digital payments and investor appetite for digital tokens and cryptocurrencies have been soaring in the wake of the Covid-19 pandemic. At least half of institutional investors in the UAE surveyed by London-based Nickel Digital Asset Management this year said they plan to dramatically increase their exposure to cryptocurrency assets between now and 2023.
However, regulation of security tokens and cryptocurrencies is at different stages among various authorities around the world, making investors vulnerable to fraud and other scams.
The UAE banking regulator does not accept or acknowledge any cryptocurrency in the country, where the only legal tender remains the UAE dirham. However, the ADGM licenses a couple of cryptocurrency exchanges and continuously refines its regulatory framework to licence them.
Meanwhile, DFSA unveiled its regulatory framework overseeing digital assets in October.
The guidelines issued by the UAE regulators have considered international standards, industry best practices and the feedback received from market participants during the public consultation, it said.
The guidelines will apply to all financial institutions that are licensed and supervised by the regulators and use the enabling technologies, irrespective of the financial activities conducted.
“Modern financial institutions need their technology to be robust and resilient," said Emmanuel Givanakis, chief executive of the FSRA at the ADGM.
"These guidelines will help financial institutions by providing best practices on how to manage and mitigate risks arising from the use of innovative technologies. In turn, this will let institutions better serve their customers."
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
RESULTS
Welterweight
Tohir Zhuraev (TJK) beat Mostafa Radi (PAL)
(Unanimous points decision)
Catchweight 75kg
Anas Siraj Mounir (MAR) beat Leandro Martins (BRA)
(Second round knockout)
Flyweight (female)
Manon Fiorot (FRA) beat Corinne Laframboise (CAN)
(RSC in third round)
Featherweight
Bogdan Kirilenko (UZB) beat Ahmed Al Darmaki
(Disqualification)
Lightweight
Izzedine Al Derabani (JOR) beat Rey Nacionales (PHI)
(Unanimous points)
Featherweight
Yousef Al Housani (UAE) beat Mohamed Fargan (IND)
(TKO first round)
Catchweight 69kg
Jung Han-gook (KOR) beat Max Lima (BRA)
(First round submission by foot-lock)
Catchweight 71kg
Usman Nurmogamedov (RUS) beat Jerry Kvarnstrom (FIN)
(TKO round 1).
Featherweight title (5 rounds)
Lee Do-gyeom (KOR) v Alexandru Chitoran (ROU)
(TKO round 1).
Lightweight title (5 rounds)
Bruno Machado (BRA) beat Mike Santiago (USA)
(RSC round 2).
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MATCH INFO
Tottenham Hotspur 3 (Son 1', Kane 8' & 16') West Ham United 3 (Balbuena 82', Sanchez og 85', Lanzini 90' 4)
Man of the match Harry Kane
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Countries offering golden visas
UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.
