Federal Decree by Law Regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business

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## Legislations
Federal Decree by Law Regarding the Central Bank, Regulation of Financial Institutions and Activitie

## Federal Decree by Law Regarding the Central Bank, Regulation of Financial Institutions and Activitie
Federal Decree by Law Regarding the Central Bank, Regulation of Financial Institutions and Activitie
The last update on this law was listed on 08 Sep 2025
Related legislations
Issued Date

## 08 Sep 2025
Effective Date

## 16 Sep 2025
Official Gazette Date

## 15 Sep 2025
Official Gazette No

## 807
Legislation State

## Active
: Every effort has been made to produce an accurate and complete English version of this website/ le
Disclaimer

## Index
Index

## Part One: The Central Bank

## Chapter One: Organization, Scope and Objectives of the Central Bank

## Chapter Two: Capital, Reserves and Accounts of the Central Bank

## Chapter Three: Management of the Central Bank

## Chapter Four: Monetary Policy and Financial Stability

## Chapter Five: Central Bank Operations

## Chapter Six: Institutional Provisions and Privileges

## Part Two: Currency

## Chapter One: Currency Unit and Issuance

## Chapter Two: Currency Circulation and Withdrawal

## Part Three: Regulation of Licensed Financial Institutions and Activities

## Chapter One: General Provisions

## Chapter Two: Licensing

## Chapter Three: Responsibilities of Licensed Financial Institutions

## Chapter Four: Prohibitions

## Chapter Five: Supervision and Oversight of Licensed Financial Institutions

## Chapter Six: Customers’ Protection

## Part Four: Financial Market Infrastructures

## Chapter One: Funds Transfer, Settlement of Securities, and Trade Repositories

## Chapter Two: Powers and Functions of the Central Bank Pertaining to Financial Market

## Chapter Three: Finality of Transactions and Proceedings

## Part Five: Grievances and Appeals

## Part Six: Administrative and Financial Sanctions and Penalties

## Chapter One: Administrative and Financial Sanctions

## Chapter Two: Penalties

## Part Seven: General Provisions

## Federal Decree by Law No. (6) of 2025 Regarding the Central Bank, Regulation of Financial Instituti
- Having perused the constitution; - Federal Law No (1) of 1972, Regarding Jurisdictions of Ministri
We Mohamed Bin Zayed Al Nahyan, President of the United Arab Emirates,
Promulgated the following Federal Decree-law:

## Article (1) Definitions
In the implementation of provisions of this decree-law, and unless the context otherwise requires, t
State:
Government:
Ministry:
Minister:
Central Bank:
Board of Directors:
Chairman:
Governor:
Public Sector:
Government-Related Entities:
Financial Free Zones:
Regulatory Authorities in the State:
Licensed Financial Institutions:
Banks:
Other Financial Institutions:
Islamic Financial Institutions:
Higher Shari`ah Authority:
Licensed Financial Activities:
Shari`ah-compliant Activities and Business:
Designated Infrastructure:
Financial Market Infrastructure:
Settlement Institution:
1. Settlement accounts to the Participant Persons and to any Central Counterparty in financial marke
In respect of a Financial Market Infrastructure, means the arrangements in place within such infrast
Default Arrangements:
1. Netting of obligations owed to or by a Participant Person. 2. Closing out of open financial posit
In respect of a Financial Market Infrastructure, shall mean any of the following:
Transfer Order:
1. Instructions by a Participant Person to place funds at the disposal of another Participant Person
In respect of a Financial Market Infrastructure, means any Person who is party to the arrangements f
Participant Person:
Designated Functions:
Authorized Individual:
Resolution:
Currency:
Monetary Base:
1. Issued Currency. 2. Aggregate balances of current accounts and deposits of Licensed Financial Ins
The percentage of qualified liabilities held by deposit-taking Licensed Financial Institutions, whic
Reserve Requirements:
Foreign Reserves:
Virtual Assets:
Clearing and Settlement System:
1. Clearing or settlement of payment obligations. 2. Clearing or settlement of obligations to transf
In respect of a Clearing and Settlement System, and for the purpose of this decree-law, means the co
Netting:
Retail Payment System:
Insurance Company (Insurer):
Reinsurance Company:
Takaful Insurance:
Takaful Insurance Company:
Takaful Insurance Fund:
Insured:
Beneficiary:
Insurance Policy:
Premium:
Insurance Broker:
Insurance Agent:
Technical Provisions:
Insurance-Related Professions:
Solvency Margin:
Actuary:
Grievances and Appeals Committee:
Person:
Year:

## Article (2) Scope of Application of this Decree-Law
The provisions of this decree-law shall apply to the Central Bank, financial institutions, insurance

## Part One: The Central Bank

## Chapter One: Organization, Scope and Objectives of the Central Bank

## Article (3) Independence of the Central Bank
1. The Central Bank shall be considered a federal public institution having its own body corporate,

## Article (4) The Central Bank Headquarters
Headquarters of the Central Bank and its official address, along with its main branch shall be locat

## Article (5) Principal Objectives and Functions of the Central Bank
1. The Central Bank aims at achieving the following objectives:
a. Maintain stability of the national Currency within the framework of the monetary system; b. Contr
2. For the purpose of achieving its objectives, the Central Bank shall have the following functions
a. Establish and implement monetary policy. b. Regulate Licensed Financial Activities, develop and p

## Chapter Two: Capital, Reserves and Accounts of the Central Bank

## Article (6) Capital and Reserves
1. The paid-up capital of the Central Bank shall be twenty billion (20,000,000,000) Dirhams. 2. The.

## Article (7) Profits and Losses of the Central Bank
1. The Board of Directors shall, at the end of each financial year, determine the Central Bank’s ann

## Article (8) Financial Year and Organization of Operations and Accounts
1. The financial year for the Central Bank shall commence on the first day of January and end on the

## Article (9) Accounts Auditing
The accounts of the Central Bank shall be audited by an auditor or more, selected periodically by th

## Article (10) Required Statements and Accounts Reports
1. Within three (3) months from end of the financial year, the Central Bank shall submit to the Chai
a. The final accounts of the Central Bank, ensuring that they reflect its true financial position an
2. The Central Bank shall provide the Ministry, upon its request, with any of the following:
a. A copy of the annual report referred to in item (1) of this article. b. Information that the Mini

## Chapter Three: Management of the Central Bank

## Section One: The Board of Directors: Article (11) Members of the Board of Directors
The Central Bank shall be managed by a Board of Directors of seven (7) members, including the Chairm

## Article (12) Members Appointment
1. Members of the Board of Directors shall be appointed by a federal decree based on recommendation

## Article (13) Membership Conditions
A member of the Board of Directors shall satisfy the following conditions: 1. Must hold UAE national

## Article (14) Resignation or Vacancy of Position
1. A member of the Board of Directors appointed in accordance with Article (12) of this decree-law m

## Article (15) Termination of Membership
1. Membership of the Board of Directors terminates upon end of the term of office without renewal, d
a. If the member committed a material misconduct or breach while performing his duties. b. If the me
2. Where term of office of members of the Board of Directors has expired without renewal, members of

## Article (16) Powers and Functions of the Board of Directors
The Board of Directors shall, within the limits of the provisions of this decree-law, exercise all p

## Article (17) Formation of Committees and Delegation of Authorities
1. The Board of Directors may form committees it deems appropriate to assist in the discharge of its

## Article (18) Meetings of the Board of Directors
1. The Board of Directors shall, upon invitation by the Chairman, hold an ordinary meeting, at least

## Article (19) Meetings Quorum
1. The Board of Directors meeting shall not be valid unless attended by at least (5) five members, i

## Article (20) Remunerations and Entitlements
The Board of Directors shall establish a regulation regarding remunerations of the Governor and his

## Section Two: Governor of the Central Bank, his Deputies and Assistants: Article (21) Powers and Comp
1. Without prejudice to the powers established for the Board of Directors or the Chairman provided h
a. Managing the Central Bank, and conducting its business in general, including managing its day-to-
3. The Governor may delegate some of his powers and competencies to any of his deputies, assistants,

## Article (22) Appointment of Deputy and Assistant Governors
The Governor shall have deputies and assistants with the rank of undersecretary, appointed by federa

## Article (23) Dedication of Service
1. The Governor, his deputies and assistants shall devote their full time to their work at the Centr

## Section Three: Higher Shari`ah Authority: Article (24) Establishment and Powers of the Higher Shari`
1. An authority named Higher Shari`ah Authority attached to the Central Bank shall be established wi
a. Provide its opinion regarding specific regulatory rules and instructions relating to the operatio
7. The Higher Shari`ah Authority may issue resolutions and fatwas, upon request from Government-Rela

## Section Four: Institutional Safeguards and Cooperation Frameworks: Article (25) Exemption from Liabi
1. The Central Bank, members of the Board of Directors, members of committees formed by the Board of
a. Exercise, or failure to exercise, the functions, powers, authorities and business of the Central
2. The Central Bank shall bear all charges, costs, expenses, and attorney fees relating to defense o

## Article (26) Confidential Information
1. It is prohibited for any member of the Board of Directors, any member of the committees and advis

## Article (27) Declaration of Conflicts of Interest
1. A member of the Board of Directors shall, upon his appointment, declare his interests, which may

## Article (28) Cooperation with Local and International Authorities
1. The Central Bank may cooperate with the regulatory authorities in the State, the concerned regula
a. The request does not contravene any of the State’s established laws and regulations; b. The requ.
2. The Central Bank may, in coordination and collaboration with the concerned regulatory authorities

## Article (29) Engagement of Experts, Technical Personnel and Academics
The Central Bank may seek assistance of experts, technical personnel and academics, or any other par

## Article (30) Provision of opinion on Draft Regulations and Rules
1. The Central Bank may elect to involve the public or industry professionals, within a prescribed t

## Chapter Four: Monetary Policy and Financial Stability

## Chapter Four: Monetary Policy and Financial Stability: Article (31) Monetary Policy
The Central Bank shall: 1. Determine its monetary management framework, related tools and operation.

## Article (32) Reserve Requirements
1. The Central Bank may, for macroprudential and liquidity management purposes, impose minimum Reser

## Article (33) Macroprudential Policy
The Central Bank shall determine its macroprudential policy framework and therein establish related

## Article (34) Coordination between Monetary and Fiscal Policies
The Central Bank and the Ministry shall establish a mechanism for coordinating monetary policy and f

## Article (35) Designating Systemically Important Licensed Financial Institutions
The Central Bank shall solely have the authority to designate any Licensed Financial Institution as

## Article (36) Domestic Market and External Sector Statistics
1. The Public Sector and Government-Related Entities shall provide the Central Bank with all informa

## Article (37) Research and Periodic Reports
The Central Bank may undertake any of the following: 1. Conduct studies, research, surveys, working

## Chapter Five: Central Bank Operations

## Section One: Operations with the Public Sector and Government-Related Entities: Article (38) Advisor
1. Advise the Government on matters falling within its jurisdiction, and shall provide its opinion o

## Article (39) Banker to the Public Sector and Government-Related Entities
1. For the purposes of achieving objectives of its monetary policy, and in order to provide for Publ

## Article (40) Investment and Deployment of Government Funds
Apart from the funds deposited with the Central Bank in accordance with the provisions of Article (3

## Section Two: Operations with Financial Institutions, Monetary Authorities, and other Central Banks:
The Central Bank may: 1. Open Dirham or foreign currencies accounts for Licensed Financial Instituti

## Article (42) Money and Capital Markets Operations
The Central Bank may conduct the following money and capital markets operations: 1. Purchase, re-pu.

## Article (43) Monetary and Financial Stability Measures
The Central Bank may: 1. Take all necessary measures to maintain the conduct of operations of Licens
a. Request the convening of a general assembly of Licensed Financial Institutions to discuss any mat
2. Provide, if it deems such action is necessary to safeguard the stability of the monetary and fina

## Article (44) Management of Securities Programs and Appointment of Primary Dealers
1. The Central Bank shall issue rules and guidelines to manage securities programs it establishes, p

## Section Three: Investment of Central Bank’s Funds and Monetary Base Cover: Article (45) Investment o
The Central Bank may: 1. Invest its funds in accordance with the investment policy and guidelines se
a. Gold bullions and other precious metals. b. Currencies in the form of notes, coins and digital, m
2. Appoint external parties to manage part of its funds as per the determined terms and conditions.

## Article (46) Monetary Base Cover
1. The market value of balance of Foreign Reserves held by the Central Bank, shall not, in all cases
a. Gold bullion and other precious metals. b. Cash, deposits and other monetary and payment instrume
2. The Board of Directors may reduce the Monetary Base cover ratio, referred to in item (1) of this

## Chapter Six: Institutional Provisions and Privileges

## Chapter Six: Institutional Provisions and Privileges: Article (47) Establishment and Governance of C
The Central Bank, for the purpose of achieving its objectives and discharging its functions stipulat

## Article (48) Privilege, Guarantee of Own Rights, and Settlement of Obligations
1. Debts of the Central Bank shall enjoy the same privilege that the Government debts have over prop

## Article (49) Financial Exemptions
1. The Central Bank shall be exempt from taxes, fees, and expenses relating to the following:
a. Its capital, reserves, Currency issuance, or income. b. Its contribution, shares, or profits orig
2. The Central Bank and the companies and establishments it owns the majority of its shares shall be

## Article (50) Guardianship of Premises and Safe Transport of Funds and Valuables
1. The Government shall provide guardianship for the Central Bank’s premises, and the security escor

## Article (51) Dissolution of the Central Bank
The Central Bank shall not be dissolved except by a law specifying the rules and timing of its liqui

## Part Two: Currency

## Chapter One: Currency Unit and Issuance

## Article (52) Currency Unit
The official Currency of the State ‘the Dirham’ shall be referred as (إ هـ د) in Arabic letters and

## Article (53) Currency Issuance
1. Issuance of Currency shall be the exclusive right of the State. This right shall be exercised sol

## Article (54) Currency Legal Tender
1. Currency notes and currency in digital form issued by the Central Bank shall be legal tender for

## Article (55) Currency Specifications, Features and Denominations
1. Currency notes issued by the Central Bank shall be of such denominations, designs, and specificat

## Article (56) Commemorative Currency
1. The Board of Directors shall determine conditions for sale and purchase of commemorative coins of

## Chapter Two: Currency Circulation and Withdrawal

## Article (57) Currency Notes and Coins
1. New Currency notes and coins shall be put in circulation by a Board of Directors decision specify

## Article (58) Currency in Digital Form
1. The Board of Directors shall issue a decision regulating the Currency in digital form to be put i

## Article (59) Currency Mutilation, Destruction and Shredding
No Person is permitted to mutilate/deform, destroy or shred Currency, in whichever manner. The Board

## Part Three: Regulation of Licensed Financial Institutions and Activities

## Chapter One: General Provisions

## Article (60) Prohibition of Carrying on or Promoting Financial Activities Without a License
1. No Person may carry on any of the Licensed Financial Activities without obtaining the required li

## Chapter Two: Licensing

## Section One: Carrying on Licensed Financial Activities: Article (61) Licensed Financial Activities
1. The following activities shall be considered financial activities subject to the Central Bank lic
a. Taking deposits of all types, including Shari`ah-compliant deposits. b. Providing credit facili..
2. The Board of Directors may:
a. Classify and define Licensed Financial Activities and the practices relating thereto. b. Add, del
3. In case a Licensed Financial Institution wishes to carry on activities licensed by regulatory aut

## Article (62) Carrying on Licensed Financial Activities through Emerging Technologies
Without prejudice to the Licensed Financial Activities referred to in item (1) of Article (61) of th

## Section Two: Licensing of Financial Institutions: Article (63) Application for Licensing
1. Any Person may, in accordance with regulations issued by the Board of Directors, submit to the Ce
a. Fit and proper criteria. b. Minimum capital requirements. c. Resources required for carrying on t
3. The Central Bank may add any requirements or conditions to be fulfilled by the applicant for lice

## Article (64) Deciding on Licensing Application or Extension of License Scope
1. Deciding on licensing application or extension thereof shall be within a period not exceeding six

## Article (65) Imposing Conditions and Restrictions on a License
1. The Central Bank may impose conditions or restrictions, or otherwise change or cancel conditions
a. Content of the decision. b. Reasons for the decision. c. Effective date of the decision. d. A sta

## Article (66) Suspension, Withdrawal, or Revocation of License
1. The Central Bank may suspend, withdraw, or revoke a license issued to a Licensed Financial Instit
a. If the Licensed Financial Institution ceased to meet, or breached one or more of the conditions o
2. Should a Licensed Financial Institution decide to apply for withdrawal of a given license, such a
a. Content of the decision. b. Reasons for the decision. c. Effective date of the decision. d. A sta
4. The decision issued by the Central Bank shall be published in two local newspapers, one in Arabic

## Article (67) Use of Term ‘Bank’ or ‘Masraf’
1. Entities other than Banks licensed in accordance with the provisions of this decree-law shall not
a. Foreign monetary authorities and central banks. b. Any federation or association established for

## Article (68) Entry to the Register and Licensing Fees
1. An electronic register named ‘Register of Licensed Financial Institutions’ shall be created at t.

## Article (69) Legal Form
1. Banks and (Re)Insurance Companies shall take the form of public joint-stock companies, with incor

## Article (70) Minimum Capital Requirements
The Board of Directors shall establish regulations on the minimum capital requirement for Licensed F

## Article (71) Shareholding and Ownership in Licensed Financial Institutions
1. Without prejudice to the financial and commercial activities restricted to UAE nationals prescrib

## Article (72) Representative Offices
1. No Licensed Financial Institutions established outside the State or in a Financial Free Zone is a

## Article (73) Amendment of the Memorandum and Articles of Association
1. Licensed Financial Institutions shall seek prior approval from the Central Bank for amendments th

## Section Three: Provisions for Islamic Financial Institutions: Article (74) Scope of Activity of Isla
1. Islamic Financial Institutions may carry on the Licensed Financial Activities referred to in Arti

## Article (75) Internal Shari`ah Supervision
1. An independent committee named ‘Internal Shari`ah Supervision Committee’ shall be established wit

## Article (76) Report of the Internal Shari`ah Supervision Committee
1. The Internal Shari`ah Supervisory Committee shall prepare an annual Shari`ah report to be present
a. A statement on the extent of independence of the Internal Shari`ah Supervisory Committee when dis
3. The Internal Shari`ah Supervisory Committee’s report shall be submitted to the Higher Shari`ah Au

## Article (77) Contravention of Islamic Shari`ah Provisions
Where it is established that an Islamic Financial Institution, has conducted business that contraven

## Section Four: Provisions for Insurance Companies and Related Professions: Article (78) Types of Insu
1. Insurance business and services shall be divided into the following two types:
a. Insurance of Persons and fund accumulation operations; and b. Property and liability insurance.
2. The resolutions, regulations and instructions issued by the Board of Directors shall determine th

## Article (79) Compulsory Insurance
The Board of Directors may impose compulsory insurance against some risks pursuant to regulations wh

## Article (80) Prohibition to Combine Insurance Operations
1. It is prohibited for Insurance Companies to combine insurance of Persons and fund accumulation op
a. Complete separation between Persons and funds accumulation insurance operations and property and
4. Notwithstanding the provisions of item (2) of this article, the Board of Director may issue a res

## Article (81) Prohibitions on Authorized Individuals
1. It is prohibited for an Insurance Company’s chairman, board members, and Authorized Individuals o
a. Engage in managing other competing Insurance Company or any company that carries on the same or s
2. It is prohibited for any Person who assumes the management of an Insurance Company or any employe

## Article (82) Insurance with a Company Outside the State or in a Financial Free Zone
1. Insurance or insurance brokerage of properties existing in the State or liabilities arising there

## Article (83) Insurance Policy
1. Insurance Companies shall provide the Central Bank with forms of Insurance Policies and related a

## Article (84) Resignation of Authorized Individuals and Vacancy of their Positions
1. Should the chairman and board members of an Insurance Company submit their resignations or should
a. Form an interim committee comprising experienced and specialized individuals and appoint a chairm
2. The Insurance Company shall notify the Central Bank in case the position of any of its board memb

## Article (85) Publication of the Call to the General Assembly Meeting
1. An Insurance Company shall not publish an invitation to hold general assembly meeting in daily ne

## Article (86) Technical Provisions and Solvency Margin Requirements
Insurance Companies shall comply with Technical Provisions, Solvency Margin requirements, and any re

## Article (87) Appointment of Actuary
An Insurance Company shall appoint or approve an Actuary within one (1) month from date the license

## Article (88) Insurance Pool
Insurance Companies may together establish one Insurance Pool or more, which include collective arra

## Article (89) Insurance of Vehicles
An Insurance Company shall conclude Insurance Policy for all motor vehicles licensed in the State wh

## Article (90) Provision of Data and Information
1. Insurance Companies and Insurance-Related Professions shall provide any data or information reque

## Article (91) Disclosure and Transparency
Insurance Companies and Insurance-Related Professions shall comply with the principles of disclosure

## Article (92) Guarantee Deposits with the Central Bank
1. (Re)Insurance Companies shall make a cash deposit at the Central Bank, as a guarantee for meeting

## Article (93) Mathematical Reserve
An Insurance Company that carries on Insurance of Persons and fund accumulation operations shall mai

## Article (94) Reinsurance Controls
Insurance Companies shall not reinsure with another Insurance Company unless the other Insurance Com

## Article (95) Bank Guarantee of Foreign Insurance Companies’ Branches
1. Branches of foreign Insurance Companies shall be obligated to submit an unconditional and irrevoc

## Article (96) Prohibition of Insurance Policies Differentiation
Insurance Companies engaged in insurance business for Persons and fund accumulation operations shall

## Article (97) Assessment of Value of Liabilities
1. Insurance Companies that carry on the insurance of Persons and fund accumulation operations shall

## Article (98) Actuary Report
1. The regulations issued by the Board of Directors, pursuant to this decree-law, shall set the data
a. A statement of valid Insurance Policies concluded by the concerned company inside or outside the
3. Following the expiry of the three-month (3) period, referred to in item (2) of this article, an a

## Article (99) Distributable Funds and Dividends
1. Insurance Companies that engage in the insurance of Persons and fund accumulation operations shal

## Article (100) Assessment of Insurance Policy Value
In the event of bankruptcy or liquidation of an Insurance Company engaged in the insurance of Person

## Article (101) Transfer of Insurance Policies to Another Insurance Company
An Insurance Company may transfer Insurance Policies it has concluded in the State, including the ri

## Article (102) Insurance Transfer Application
1. Insurance transfer application shall be submitted to the Central Bank, accompanied by documents r

## Article (103) Funds Free-up in case of Ceasing Insurance Business
Without prejudice to the provisions of Article (126) of this decree-law, should an Insurance Company

## Article (104) Takaful Insurance Business
Takaful Insurance Companies, Re-Takaful Insurance Companies and Insurance Companies that carries on

## Article (105) Takaful Insurance Fund
1. Takaful Insurance Company, Insurance Company, or Reinsurance Company that carries on Takaful Insu

## Article (106) Emirates Insurance Federation
1. Pursuant to the provisions of this decree-law, a professional union shall be established called ‘

## Section Five: Provisions Relating to Undertaking Designated Functions Subject to Central Bank Author
1. The Board of Directors may issue regulations, rules, standards, conditions, and instructions, spe

## Article (108) Application for Authorization to Undertake Designated Functions
1. A Licensed Financial Institution shall submit an application to the Central Bank for authorizatio

## Article (109) Deciding on Application for Authorization to Undertake or Add other Designated Functio
1. Deciding on application for authorization or extension thereof shall be within a period not excee
a. Content of the decision. b. Reasons for the decision. c. A statement advising the applicant of hi

## Article (110) Imposing Conditions and Restrictions to an Authorization to Undertake Designated Func
1. The Central Bank may decide to add conditions or restrictions to an authorization to undertake De
a. Content of the decision. b. Reasons for the decision. c. Effective date of the decision. d. A sta

## Article (111) Suspension, Withdrawal, or Revocation of Authorization to Undertake Designated Functio
1. The Central Bank may suspend, withdraw, or revoke the authorization issued to an Authorized Indiv
a. If the Authorized Individual ceased to meet, or breached one or more of the fit and proper criter
2. In all cases, the authorization shall be revoked in case a cancellation application was submitted
a. Content of the decision. b. Reasons for the decision. c. Effective date of the decision. d. A sta

## Article (112) Prohibition of Undertaking Designated Functions at Licensed Financial Institutions
1. The Central Bank may prohibit any individual from working, or undertaking Designated Functions re
a. Content of the decision. b. Reasons for the decision. c. Effective date of the decision. d. A sta

## Chapter Three: Responsibilities of Licensed Financial Institutions

## Article (113) Guarantee Deposits of Other Financial Institutions with the Central Bank
All Other Financial Institutions are obligated to maintain guarantees, in the form of cash deposits,

## Article (114) Compliance with Central Bank’s Instructions
1. Licensed Financial Institutions shall comply with all regulations, rules, standards, circulars, d

## Article (115) Central Bank Risk Bureau
The ‘Risk Bureau’ at the Central Bank shall undertake compilation, exchange and processing of credit

## Article (116) Transactions with Related Parties
1. Each deposit-taking Licensed Financial Institution shall prepare a quarterly statement, in the fo
a. Any member of its board of directors.
b. Any establishment or company where the concerned institution is a partner, manager, agent, guaran
2. The Central Bank shall be provided with copy of the statement referred to in item (1) of this art
a. Require the concerned institution to allocate provisions for these facilities, or reduce its expo

## Chapter Four: Prohibitions

## Article (117) Prohibition of Conducting Specific Operations
1. The Central Bank may prohibit Licensed Financial Institutions from conducting all or some of the
a. Dealing in specific assets, investments, or monetary and financial instruments. b. Closing deals
2. The Board of Directors may issue rules, regulations and standards relating to the operations refe
a. Content of the decision. b. Reasons for the decision. c. Effective date of the decision. d. A sta

## Article (118) Prohibition on activities of Deposit-Taking Licensed Financial Institutions
Deposit-taking Licensed Financial Institutions shall not carry on any of the following activities: .

## Article (119) Restrictions on Provision of Credit Facilities
1. Licensed Financial Institutions may extend credit facilities to members of their boards of direct

## Chapter Five: Supervision and Oversight of Licensed Financial Institutions

## Section One: Provisions relating to Supervision and Oversight: Article (120) Provisions Relating to
1. A Person shall not, whether solely or jointly with related parties, hold controlling interest, or
a. Serving a violation notice and giving the violating party a time limit for regularization, otherw
4. The Board of Directors shall issue regulations and directives pertaining to determining the stand

## Article (121) Opening Branches and Subsidiaries Inside or Outside the State and in a Financial Free
A Licensed Financial Institution shall not establish any branch or subsidiary inside or outside the

## Article (122) Providing the Central Bank with Information and Reports
1. Licensed Financial Institutions shall:
a. Provide the Central Bank with reports, information, statements and other documents, which it dete
2. Licensed Financial Institutions are prohibited from issuing instructions or directives, or agree

## Article (123) Reporting of Violations
1. Licensed Financial Institutions, along with their legal representatives, compliance officers, and
a. Occurrence of any ‘Matter of Significance’, which may impact its activities, structure, entity, o
2. The aforementioned Persons referred to in item (1) of this article shall not be considered to hav

## Article (124) Submission of Data on Financial Position Required by the Central Bank
1. Each Licensed Financial Institution shall be required to provide the Central Bank with the statem
a. Audited balance sheet, showing use of assets and liabilities arising from operations of the conce
2. The Central Bank may also require the Licensed Financial Institution to provide the following:
a. Copy of the interim profit and loss account, on semi-annual basis, or for other periods specified
3. No Licensed Financial Institution shall present the data and reports related to its financial pos

## Article (125) Merger and Acquisition
1. A Licensed Financial Institution shall not merge with or acquire any other institution, regardles
a. Content of the decision. b. Reasons for the decision. c. Effective date of the decision. d. A sta

## Article (126) Cessation of Business
A Licensed Financial Institution shall not cease to operate, fully or partially or suspend its opera

## Article (127) Consolidated Supervision
The Central Bank may conduct consolidated supervision of Licensed Financial Institutions according t

## Article (128) Authority to Issue Instructions and Directives for Prudential Purposes
1. The Board of Directors shall, for the purposes of prudential supervision, issue necessary instruc
a. Compliance with Central Bank instructions and directives relating to prudential ratios determined
2. The Central Bank may take any additional actions to those mentioned in item (1) of this article.
a. If the Central Bank is the consolidating supervisory authority of the entities referred to in thi
4. The instructions referred to in item (3) of this article may include the following:
a. Require the subsidiary of the concerned Licensed Financial Institution to suspend provision of pa
5. The Central Bank may notify any parent company of a Licensed Financial Institution to take certai
a. If the Central Bank is the consolidated supervisory authority for the institutions referred to in

## Article (129) Limits of Operations
The Central Bank may set limits to which Licensed Financial Institutions shall adhere to in their op

## Article (130) Governance of Licensed Financial Institutions
1. The Central Bank shall establish a general framework for governance of Licensed Financial Institu

## Article (131) Rulebook
The Central Bank shall establish an electronic guide, which would include all regulations issued by

## Article (132) Retroactive Effect of Central Bank Regulations and Decisions
The regulations, decisions, or circulars issued by the Central Bank in accordance with the provision

## Article (133) Examination
1. The Central Bank may, at any time, dispatch any of its staff or any third party authorized to act
a. Impose restrictions on some of the operations or activities carried on by the concerned Licensed
8. Licensed Financial Institutions shall bear all expenses of examination and investigations process

## Article (134) Examination of Entities of National Licensed Financial Institutions Operating Outside
The Central Bank may dispatch one or more of its examiners or experts, to undertake examination of e

## Article (135) Expert Report
The Central Bank may assign an expert or a Person qualified in the area of Licensed Financial Activi

## Article (136) Judicial Officer Capacity
Central Bank staff designated per decision issued by the Minister of Justice, in coordination with t

## Article (137) Requesting Intervention in Lawsuits and Judicial Proceedings and Notification of Inves
1. Without prejudice to the provisions of the ’Civil Procedures Law’, the Central Bank may request i

## Section Two: Financial Accounts: Article (138) Financial Year of Licensed Financial Institutions
The financial year for a Licensed Financial Institution shall begin on the first of January and end

## Article (139) Accounts of Branches of Foreign Licensed Financial Institutions
1. Branches of foreign Licensed Financial Institutions shall maintain separate accounts for all thei

## Article (140) Auditors of Accounts of Licensed Financial Institutions
1. Each Licensed Financial Institution operating in the State shall appoint an auditor of accounts o

## Article (141) Publication and Posting of Accounts Information
1. Each Licensed Financial Institution shall publish and post the following information and statemen
a. Copy of its audited balance sheet and profit and loss account, and copy of the auditors’ report.
2. The Central Bank may, require any Licensed Financial Institution to publish or post any informati

## Section Three: Early Intervention, Resolution and Liquidation of Licensed Financial Institutions: Ar
1. Where a Licensed Financial Institution, breaches or is likely to breach its capital or liquidity
a. Require the concerned institution to implement one or more measures in its recovery plan. b. Requ
2. In respect of a (Re)Insurance Company failing to take certain measures or actions to rectify its
a. Suspend or prevent the concerned company from concluding any more insurance contracts or practici
3. The provisions stipulated in items nos. (1) and (2) of this article shall apply to Insurance-Rela
6. The concerned Licensed Financial Institution shall be notified, officially, of the Central Bank’s
a. Content of the decision. b. Reasons for the decision. c. Effective date of the decision. d. A sta

## Article (143) Resolution Powers
1. The Central Bank is the ‘Resolution Authority’ in the State and shall have the following powers i
a. Remove and appoint the senior management and directors and other Authorized Individuals, and reco
e. Ensure the continuity of operational services and functions the Central Bank deems necessary thro
1. Require other entities in the same group to continue to provide services or facilities to the con
f. Override rights of shareholders of the concerned institution, including removing the rights to ac
1. Amend the maturity date; 2. Amend the amount of interest payable; or 3. Amend the date on which..
q. Require a Person to discontinue or suspend the admission to trading of financial instruments rela
2. The Central Bank may exercise its resolution powers:
a. Irrespective of any restriction on, or requirement to obtain consent for (other than from a purch
3. The Central Bank’s exercise of its powers referred to in item (2) of this article shall have prec
a. As a deduction from any consideration paid by a transferee of the concerned institution or, as th
6. Where the Central Bank determines there are impediments to the resolvability of the concerned ins
a. Permit the exercise of options under existing contracts of insurance, including the surrender or

## Article (144) Order of Fulfillment of Debts and other Obligations
Subject to the powers and measures exercised by the Central Bank under Articles nos. (142) and (143)

## Article (145) Publication of Resolution or Liquidation Announcement
1. In case of resolution or liquidation of a Licensed Financial Institution, such an announcement sh
a. A grace period, not be less than three (3) months, allowed to customers of the concerned institut
2. If the resolution or liquidation occurred as a result of the Licensed Financial Institution being

## Article (146) Surveillance of Financial Institutions under Resolution or Liquidation
The Central Bank shall continue surveillance of operations of any financial institution under resolu

## Chapter Six: Customers’ Protection

## Article (147) Confidentiality of Data and Information
1. All data and information relating to customers and business of Licensed Financial Institutions an
a. The powers legally vested on security and judicial authorities, the Central Bank and its employee

## Article (148) Protection of Customers of Licensed Financial Institutions
1. The Board of Directors shall issue regulations relating to protection of customers of Licensed Fi

## Article (149) Fraud Prevention
1. Licensed Financial Institutions shall implement robust fraud prevention and detection mechanisms

## Article (150) Credit Facilities Guarantees
1. Licensed Financial Institutions shall obtain and maintain adequate guarantees for all types of fa

## Article (151) Establishment of Specialized Funds
1. The Central Bank may establish specialized funds that have independent legal personality for the

## Article (152) Financial Inclusion
1. The Board of Directors shall establish necessary regulations and mechanisms to ensure that every

## Part Four: Financial Market Infrastructures

## Chapter One: Funds Transfer, Settlement of Securities, and Trade Repositories

## Article (153) Establishment and Operation of Financial Market Infrastructure
1. The Central Bank may:
a. Establish, develop, or operate one or more clearing or settlement systems for transfer of funds,
2. The Central Bank shall coordinate with concerned regulatory authorities and other bodies in the S

## Article (154) Application for Licensing Financial Market Infrastructures or Extension of License Sco
1. Any juridical person may, in accordance with regulations issued by the Board of Directors, submit
a. Fit and proper criteria; b. Resources required for the system; and c. Control and monitoring syst
3. The Central Bank may, at its own discretion and as it deems appropriate to safeguarding public in

## Article (155) Deciding on Application for Licensing Financial Market Infrastructures or Extension of
1. Deciding on licensing of Financial Market Infrastructures or extension of its scope shall be with

## Article (156) Retail and Wholesale Payment Operations and Related Digital Services
The Central Bank shall solely: 1. Have the authority to issue regulations, rules, and procedures re.

## Chapter Two: Powers and Functions of the Central Bank Pertaining to Financial Market

## Article (157) Designation of Financial Market Infrastructures
1. The Central Bank may designate any Financial Market Infrastructure as systemically important (‘De
a. The concerned infrastructure is operating in the State; b. The concerned infrastructure has the c
3. Should the Central Bank intend to designate any of the Financial Market Infrastructures it licens
a. Notify the operator of the infrastructure, or its Settlement Institution, officially, of its inte
4. The operator of the Designated Infrastructure or the Settlement Institution may submit a grievanc
a. Notify the operator of the infrastructure or its Settlement Institution, officially, of the inten
7. The Central Bank may revoke designation of a particular Financial Market Infrastructure it licens

## Article (158) Oversight of Financial Market Infrastructures
1. The Central Bank shall solely undertake oversight over operations of Financial Market Infrastruct
a. Require operators of the Designated Infrastructures or their Settlement Institutions to comply wi
3. The Central Bank may appoint whoever it deems appropriate of experts and advisers specialized in

## Article (159) Suspension or Revocation of a License
1. The Central Bank may suspend or revoke a license granted to a Financial Market Infrastructure, in

## Article (160) Authority to Issue Regulations and Instructions
1. The Board of Directors shall issue regulations, instructions, rules, directives, and codes of con
a. Regulations, conditions and rules relating to licenses, granted by the Central Bank in accordance
2. The Central Bank may exempt operators of Financial Market Infrastructures it licenses, the Settle

## Article (161) Determining Violations
1. The Board of Directors shall issue regulations specifying types of violations pertaining to Finan
a. Violation of operational requirements of such infrastructures and related settlement rules and pr
2. The Central Bank may take whatever actions it deems appropriate to rectify any violations referre

## Chapter Three: Finality of Transactions and Proceedings

## Article (162) Finality of Payment and Settlement
1. All transactions conducted through a Financial Market Infrastructure, which meets one of the desi
a. Transfer of funds from or to the account of a Participant Person. b. Settlement of a payment obli
2. No transfer or settlement pertaining to the transactions referred to in item (1) of this article

## Article (163) Precedence of Implementation of Financial Market Infrastructures’ Rules and Procedures
1. None of the following operations and procedures carried out through Financial Market Infrastructu
a. A Transfer Order. b. Any disposition of property in pursuance of such Transfer Order. c. The D...
2. The relevant resolution administrator or insolvency officer or any Person appointed to manage the

## Article (164) Netting of Obligations of Insolvent or Bankrupt Participants Parties
1. The operator of a Financial Market Infrastructure, which meets any of the designation conditions
a. The obligations that are netted shall be disregarded in the bankruptcy or liquidation rules and p
3. Netting operations processed by the concerned infrastructure’s operator in accordance with item (

## Article (165) Preservation of Rights in Underlying Transactions
1. Except to the extent that it expressly provides, this decree-law shall not operate to limit, rest
a. Any right, title, interest, privilege, obligation or liability of a Person resulting from the und
2. Nothing in item (1) of this article shall be construed to require:
a. The unwinding of any Netting done by the operator of the concerned infrastructure, whether pursua

## Article (166) Obligation of a Participant Person to Notify in the Event of Bankruptcy or Liquidation
1. A Participant Person in a Financial Market Infrastructure, which meets any of the designation con
a. Put under resolution. b. Presentation of a plea for declaration of his bankruptcy or liquidation;
2. A Participant Person failing to notify of a relevant event referred to in item (1) of this articl
a. He took reasonable steps to comply with the provisions of item (1) of this article; or b. The aut

## Part Five: Grievances and Appeals

## Article (167) Grievances and Appeals Committee
1. Under the provisions of this decree-law, an independent committee named ‘Grievances and Appeals C
a. Require any Person to appear before the committee to present and consider any evidence, testimony
6. A decision issued by the committee on the grievance or appeal shall be final and shall only be ch

## Part Six: Administrative and Financial Sanctions and Penalties

## Chapter One: Administrative and Financial Sanctions

## Article (168)
1. Without prejudice to other sanctions or procedures stated in this decree-law or any other laws in
a. Issue, by any means, a caution to the violator. b. Require the violating Licensed Financial Insti
2. Decisions to impose the sanctions referred to under item (1) in this article shall be effected by
a. Content of the decision. b. Reasons for the decision. c. Effective date of the decision. d. A sta
4. The Central Bank shall have the power to immediately enforce any administrative and financial san

## Chapter Two: Penalties

## Article (169)
Without prejudice to any harsher punishment provided for in any other law, the offences referred to

## Article (170)
Any Person who engages in any of the Licensed Financial Activities referred to in item (1) of Articl

## Article (171)
The following shall be punished by imprisonment and a fine of no less than one hundred thousand (100

## Article (172)
Whoever issues Currency in violation of the provisions of this decree-law shall be punished by impri

## Article (173)
Whoever, publicly and intentionally mutilates, destroys or tears up Currency, shall be punished by i

## Article (174)
1. Whoever contravenes the provisions of item (6) of Article (60) of this decree-law shall be punish

## Article (175)
Whoever violates the conditions and restrictions imposed on a license to carry on Licensed Financial

## Article (176)
Whoever contravenes the Central Bank’s instructions regarding early intervention and resolution, ref

## Article (177)
Whoever contravenes any of the provisions of Articles (67) or (121) of this decree-law shall be puni

## Article (178)
1. Whoever violates any of the provisions of Article (107) of this decree-law, shall be punished by

## Article (179)
Whoever commits any of the following violations shall be punished by imprisonment and a fine of not

## Article (180)
Whoever commits any of the violations relating to Financial Market Infrastructures referred to in it

## Article (181)
1. Where a violation was committed by a juridical person, the official in charge of management shall

## Part Seven: General Provisions

## Article (182) Fees and Charges
The Central Bank may impose fees and charges for providing any service, including but not limited to

## Article (183) Enforceability of Applicable Regulations
1. Current regulations, decisions, standards, guidelines, and circulars, issued in accordance with t

## Article (184) Reconciliation of Positions
All agencies and Persons subject to the provisions of this decree-law shall reconcile their respecti

## Article (185) Repeal of Conflicting Provisions
Any provision of applicable laws in the State contravening or conflicting with the provisions of thi

## Article (186) Enforceability of Judgments of Foreign Judicial Authorities
Judgments and decisions issued by foreign judicial in respect of national Licensed Financial Institu

## Article (187) Interpretation of Specific Terms Referred to in this Decree-Law
1. If there is a reference in any legislation in force in State to the ‘dirham’, the ‘UAE dirham’, ‘

## Article (188) Publication and Application of this Decree-Law
This decree-law shall be published in the Official Gazette, and shall come into force on the day fol
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