UAE Government sets up KYC platform for increased financial
Posted on Nov 29, 2024 at 09:11 PM
The UAE government has established the “Know Your Customer” (KYC) digital portal, which would give accurate, complete, and confidential data for financial transactions.
Meanwhile, this platform is a key aspect of the country's strategy to set up a unified legislative framework for consumer identification verification, modernise its financial infrastructure, and accelerate digital transformation.
It fortifies national initiatives to fight financial crime, guarantees adherence to financial legislation, and improves transparency.
The KYC Platform Elevates UAE's Global Profile
The KYC platform, established by Federal Decree-Law No. 30 of 2024, is crucial for supporting the UAE's economy by enhancing confidence in its financial and economic institutions by providing a secure identity verification framework.
Additionally, it raises the country's fintech profile internationally by providing cutting-edge technical solutions for the banking, insurance, and financial industries, which eventually supports a steady and sustainable economic climate.
Likewise, the UAE's banking industry is enhancing its leadership with the launch of a KYC platform, utilizing state-of-the-art digital technologies to confirm customer identities and ensure regulatory compliance, positioning it among the world's top banks.
Users are empowered to make well-informed decisions because of the platform's precise and thorough data, which facilitates more openness in financial transactions.
Moreover, by guaranteeing the lawful and controlled gathering and utilisation of consumer information, the KYC platform facilitates information sharing across pertinent agencies and strengthens collaboration in the fight against financial crime.
Legal Framework for the Platform
The Decree-Law in the UAE establishes a new firm with legal authorisation to build and manage a KYC platform, ensuring compliance with national cybersecurity policy and standards. The firm will manage data collection, storage, analysis, categorization, use, interchange, and sharing.
In addition, the organisation will produce KYC reports under the Decree-Law's executive requirements and work with data suppliers to speed KYC data collecting, among other responsibilities.
Furthermore, the Decree-Law creates a tight legal framework for securing consumer data, allowing disclosure only under certain situations. All parties involved must secure this data from loss, destruction, and unauthorised access, with any data use or sharing needing prior customer or legal entity agreement.
Plus, customers have the right to see their KYC report data, as indicated in the Central Bank's executive regulations or recommendations.
KYC Data Confidentiality Laws
Violations of KYC data confidentiality laws can result in a minimum two-year jail term and a fine of AED 50,000. This applies to dishonest attempts to obtain KYC reports, fake information, or unauthorised disclosure of client data, and is exacerbated when public officials or platform management firm employees misuse client data.
Notably, the business in charge of the (KYC) platform will be subject to supervision and regulation by the Central Bank of the United Arab Emirates. Along with establishing a code of conduct for data suppliers and consumers, it will determine the rules under which the business operates and renders services.
In closing, the Central Bank will also outline the types of client data that the business can seek from data providers, as well as the requirements for systems used to store, process, and protect data.
Read more news:
COP29: A Global Race to Save the Climate Amid Political and Financial Challenges
Japanese scientists Bet on an Ancient Material: Wood, for their New Satellite
Mobily Launches the First Saudi Undersea Cable in Collaboration with Telecom Egypt
