Call Us Call: + 971 4 441 07 93
Now in Dubai:
Office working hours: Sun-Thu from 9:00 to 17:30
contact@companies-dubai.com
MORE
Our services, prices:
 
 

Offshore company in Dubai, UAE

Read more
 

Getting UAE resident visas

Read more
 

Start your own business in Dubai

Read more
 

Onshore company in Dubai, UAE

Read more

Banking Laws and Regulations in UAE

Banking Laws and Regulations in UAEThe United Arab Emirates offers one of the most reliable banking systems in the world and possesses the highly developed banking infrastructure. Such level of development has become possible owing to the strict governmental control and regulations that are implemented by the UAE Central Bank.

The UAE Central Bank, playing the role of a "Bank of Banks", is entitled to monitor all the activities of the UAE banks. In practice, it is very difficult to obtain a license for opening any financial institution in the UAE. That is why the UAE banking sector features only the reliable and reputable banking institutions.

The UAE banking system is a smoothly functioning under the applicable Banking Laws and Regulations in UAE and is the well-structured sector of the UAE national economy. The banking system of the United Arab Emirates consists of the Central Bank and numerous other local and foreign banking institutions.

As of today, the UAE banking sector is represented by 21 national and almost 50 foreign banks. All these institutions meet the highest international requirements and regulations in terms of delivering banking services.

UAE Banking Law: General Structure and Main Laws and Regulations

The United Arab Emirates has a well-developed system of banking laws that regulate activities of the UAE banks and financial institutions. The key UAE banking laws and regulations are:

  • The Central Bank Law (1980);
  • Law of Islamic banks;
  • Circulars relating to Anti-Money Laundering (AMLSCU);
  • Other regulations.

Central Bank of the United Arab Emirates serves the function of the main regulatory authority. This state institution is responsible for solving the most important regulatory tasks, such as:

  • Currency management;
  • Defining a monetary policy line;
  • Exercising banking regulation.

The UAE Central Bank executes the consistent policy of enhancing the general credibility of the UAE banking system and ensuring transparency of the bank activities for the UAE banks’ clients. For this purpose, it has issued some laws and regulations that define the way of providing banking services to the clients. The major UAE banking regulations are the following:

  • The maximal mount of a personal loan, which can be granted to a borrower, is equal to the amount of 20 monthly salaries. The repayment must be made in 48 months.
  • Banking institutions and financial companies may not take blank cheques when granting take blank cheques;
  • Banking institutions and financial companies are not allowed to issue credit cards and grant loans over the phone;

Certain requirements and regulations are also applied to the procedure of opening bank accounts with the UAE banks. Thus, the standard list of the necessary documents includes:

  • Confirmation of the UAE residence – for persons and legal entities having such status;
  • Passport with the UAE residence visa or a document proving the UAE citizenship – if applicable;
  • Salary certificate or other confirmation on source of income;
  • No-objection letter from the employer or other similar applicable document.

At the same time, it is crucial to take into account the fact that each banking institution may apply its own compliance regulatory requirements to the list of the necessary documents and other stages of the account-opening procedure. Besides, such requirements may vary depending on the type of a financial instrument or a banking service you are applying for.

UAE Banking Law: Confidentiality of Information

As of today, the United Arab Emirates is one of the few countries that uphold the right of their citizen to confidentiality of personal information. This applies to the most various areas of the relationships between the state and the individual.

Speaking about the UAE banking sector, it should be noted that the secrecy of personal information of the customers is guaranteed at the legislative level.

Moreover, the United Arab Emirates has not signed any agreements for exchange of personal information of the bank account holders with other countries.

According to the 2015 Tax Justice Network and Financial Secrecy Index, the United Arab Emirates is among the TOP-10 countries in the world that observe confidentiality rights of their citizen.

Conclusion

The system of the UAE banking law and regulations is considered to be one of the best in the world. All the banking deposits are guaranteed by the state, and the safety of transactions is ensured by the Central Bank of the United Arab Emirates.

 

 

See also more details on: