Latest News

CONNECT, NOW.
We understand the importance of availability, and we act on it.

New Regulatory Framework Requires Compensating for Non-negligent Consumers “Whose Account Is Hacked”

3/5/2021

Licensed financial institutions must implement effective administrative and commercial practices in order to provide protection within the first line of defense.

A new regulation was posted to the Official Gazette from the Central Bank on March 31st 2021 and now come in to effect on April 30th 2021 outlining, precautionary requirements and behavior for specialized banks.

The Central Bank stated that banks and financial institutions would be held responsible for bearing the cost of compensation for those who have been directly as a result of the breach of his data, unless it is proved that the losses occurred due to gross negligence or fraudulent behavior on the part of consumers.

According to the new consumer protection system, recently issued by the Central Bank, licensed financial institutions must have appropriate security protection and monitoring procedures in order to discover and track any unauthorized internal access or use of consumer information, and any violation of the right of access or misuse must be recorded and notified to the Central Bank.

The Central Bank outlined that specialized banks are the banks licensed under the new system of the Central Bank, which can practice various financial activities to UAE citizens and residents only.

The new system for specialized banks aims to provide a regulatory framework, through which “specialized banks” should operate to avoid any risk to consumers and to ensure the use of the latest technology across the financial sector.

According to the law, licensed financial institutions must implement effective administrative and commercial practices in order to provide protection within the first line of defense.

You might also like...
Emiratisation Penalty upto AED 72,000/- Will Take Effect from 1 Jan 2023
Starting from 1 January 2023, private sector companies with 50 employees or more that have not raised Emiratisation targets by 2% of skilled jobs in 2022, will be fined according to the Ministry of Human Resources and Emiratisation (MoHRE).
read More
FTA Sets Deadline 31 December 2022 to Apply for Re-determination of Administrative Penalties on Taxes
The UAE's Federal Tax Authority (FTA) urged eligible registered taxpayers to apply for the re-determination of administrative penalties on taxes prior to the 31 December 2023 deadline.
read More
Facilities for Small Projects Subject to Corporate Tax
The Ministry of Finance revealed its intention to offer facilities for small projects subject to corporate and business tax, noting that details of these facilities will be announced during the first half of next year.
read More
SEE ALL INSIGHTS
Thanks, got it!
Something went wrong, please try again.

Use our online calendar to set up your own appointment and connect to an elawyer for a consultation.