UAE issues new rules for online payments

The UAE Central Bank on Wednesday issued new regulations for "stored value digital payments".

In a statement, the central bank said that the rules were finalised after an extensive consultation process over many months with the relevant stakeholders.

The objective of the regulations is to facilitate 'robust adoption of digital payments across the UAE in a secure manner', it said.

The Governor of the Central Bank Mubarak Al Mansoori said: "The issuing of these regulations is a landmark in supporting the government of UAE's vision to position the country as a global leader in digital services, via a knowledge-based and innovation drove the economy. The regulations are also designed to foster financial inclusion in the UAE."

The statement said that the regulations specify four licence categories under which entities can provide digital payments services. They are: (a) retail; (b) micropayment; (c) government; and (d) non-issuing.

"Each category is subject to a particular set of regulatory requirements with a view to providing protection for the UAE Payment System and Consumers," it said.

"The central bank recognises that Fintech development will play an important role in shaping the future of the financial services industry in the UAE. The central bank stands ready to support this innovation," the statement further said.

"The central bank will continue to take a lead role in implementing this new regulatory framework for digital payments with the aim of positioning the UAE as a global leader in trusted digital payments services, which are accessible to all consumers in the UAE," it said.

Bounced cheque can lead to freeze tenant's account in Dubai

The Rental Disputes Centre (RDC), the judicial arm of the Dubai Land Department (DLD), and the UAE Central Bank have signed an agreement that allows for freezing of the bank account of a tenant if his/her rent cheque bounce.“After the judgment is passed by the RDC, it will be informed to the Central Bank, which will pass the information to the banks. It could also lead to blocking of tenant’s bank account,” a DLD spokesperson said.

“This process will now take two days instead of 60,” the spokesperson added.

In a statement, the DLD said the aim of the MoU, signed by RDC Director Abdulqader Musa Mohammed and UAE Central Bank’s Assistant Governor for Banking Supervision, Saeed Abdullah Al Hamiz, was to create an electronic framework of cooperation to facilitate the implementation of decisions and judgments.

The proposals will speed up procedures and reduce transaction time from six months to two working days following the transition from paper-based to electronic systems. Both parties agreed to establish a platform utilising the UAE Central Bank’s existing Customer Information Request (CIR) system.

As per the agreement, the Central Bank will direct queries submitted by the RDC to enable the efficient execution of judicial committee decisions and judgments. These verdicts will be directly implemented by the banks, which will also provide immediate responses to enquiries.

RDC’s Mohammed said: “This move is consistent with our ongoing efforts to improve upon existing frameworks of cooperation with official bodies, with the aim of improving government procedures and promoting cooperation between all institutions.

“It is expected that this MoU will pave the way towards promoting transparency for all property transactions and procedures, benefiting all parties and guaranteeing the protection of their rights.”

The number of RDC judgments to be implemented for 2016 stands at 2,630, all of which will all now be rapidly implemented by the effective system set in motion as an outcome of this MoU, he added.

UAE Central Bank’s Al Hamiz emphasised the vital role that the RDC plays in supporting the stability of the national markets and in upholding transparency, providing greater peace of mind and ensuring a higher level of security for all parties involved in property contracts.

“The CIR system at the Central Bank has safeguarded stability across many of Dubai’s industry sectors and we are certain that this will also be the case for our cooperation with the RDC and DLD. Our plan will help the emirate’s real estate sector by maintaining the rights of all parties, ensuring justice through the fair and efficient application of the provisions of UAE law,” he said.