The UAE President has issued a new Federal Decree-Law regulating the Central Bank, financial institutions, and insurance operations. One of the most notable provisions allows administrative fines to be scaled according to the severity of violations and the size of transactions, reaching up to ten times the value of the infraction.
The decree requires licensed banks and insurers to provide broad access to financial services, enhance consumer protection through centralised complaint systems, and permit early intervention when a licensed entity exhibits signs of financial difficulty. It also introduces automatic deduction of fines pending judicial decisions and obliges public disclosure of penalties on the Central Bank’s website.
The law underscores key priorities: maintaining currency stability, safeguarding the integrity of the financial system, and ensuring prudent management of foreign exchange reserves. Financial institutions must now hold sufficient guarantees when granting credit to individuals and sole proprietorships.
