The UAE President Shaikh Khalifa bin Zayed Al Nahyan on Sunday, issued ‘Decretal Federal Law No. (14) of 2018 regarding the Central Bank of UAE and Organization of Financial Institutions and Activities.’
The new law, in addition to raising the capital of the central bank spells out the role of CBUAE in protecting the financial stability, reserve management and conduct of the monetary policy.

The new law raises CBUAE capital to Dh20 billion and allows establishment of a general reserve of up to four times the paid-up capital. The law also sets three major objectives for the Central Bank, of which the most important is to protect stability of the financial system in the State, ensure prudent management of CBUAE foreign reserves and maintain stability of the national currency within the monetary system,” said Shaikh Hamdan Bin Rashid, Deputy Ruler of Dubai and Minister of Finance.
Development of the supervisory framework, along with the disclosure, compliance procedures and governance in the Central Bank operations is part of the provisions of the new law.
“It is a significant step towards comprehensive development of the financial sector in the UAE and reinforcement of Central Bank’s independence and regulatory powers. This will promote effective control over the financial sector in line with international best practices and standards,” said Mubarak Rashed Al Mansoori, Governor of the Central Bank of the UAE.

In addition to spelling out specific licencing requirements for financial activities the law strengthens CBUAE’s enforcement powers to impose a broad range of administrative, financial sanctions and penalties on licensed financial institutions that are in violation of the provisions of this law.
The new enforcement powers granted to CBUAE will requires setting up of an independent committee, named “Grievances & Appeals Committee” will be established under the chairmanship of a court of appeal judge. The Committee shall have the sole and exclusive jurisdiction to decide on grievances and appeals against any decisions by CBUAE related to licensing, authorization of individuals, and licensing and designation of financial infrastructure systems.
The new law also contains specific provisions for customers’ protection, and sets out comprehensive rules governing the confidentiality, protection, and appropriate use of customer banking and credit information, and to facilitate greater financial inclusion.

SOURCE : GULFNEWS