CBUAE Open Finance Policy

Consumer Protection Regulation

The Consumer Protection Regulation issued by the CBUAE aims to protect the interests of consumers using financial products, services, or engaging in relationships with licensed financial institutions in the UAE. It establishes standards of conduct expected from these institutions and defines regulatory requirements to ensure consistent interpretation and implementation.

Consumer Protection Standards

The Consumer Protection Standards, issued by the CBUAE, outline mandatory requirements for Licensed Financial Institutions in the UAE. These standards aim to ensure transparency, fair market conduct, and protection of consumer data and assets. The document supplements Circular No. 8 – 2020 and is enforceable in the same manner as the regulation.

Digital Dirham - Policy Considerations

This CBUAE working paper introduces the concept of the Digital Dirham, the UAE's upcoming digital currency. It explores policy considerations for its implementation, including its potential impact on monetary policy, payment systems, and financial inclusion. The paper also addresses potential risks related to financial stability and cybersecurity.

Digital Dirham (CBDC) Strategy

The Central Bank of UAE (CBUAE) launched its Central Bank Digital Currency (CBDC) Strategy, named "The Digital Dirham", as part of its Financial Infrastructure Transformation (FIT) Programme. The strategy aims to address domestic and cross-border payment inefficiencies, promote financial inclusion, and support the UAE's transition to a cashless society by implementing a CBDC.

Guidance on Digital Identification for Customer Due Diligence

This CBUAE guidance assists licensed financial institutions (LFIs) in understanding and performing their obligations related to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) when using digital identification for Customer Due Diligence (CDD). It outlines the use of digital ID systems for CDD, associated risks, and how to assess the reliability of these systems.

Guidance on Responsible Use of Artificial Intelligence in Financial Services

The CBUAE issued guidance on the responsible adoption and use of AI and machine learning by licensed financial institutions in the UAE. It establishes a framework to safeguard consumer rights, strengthen governance and transparency, and promote fair practices. The guidance aligns with the UAE’s national AI strategy.

Guidance on Risks Related to Virtual Assets and Virtual Asset Providers

This CBUAE guidance outlines the risks associated with virtual assets (VAs) and virtual asset service providers (VASPs) and provides instructions for Licensed Financial Institutions (LFIs) on mitigating money laundering and terrorist financing (ML/TF) risks. It details the process for LFIs to obtain CBUAE's non-objection for opening new accounts for VASPs and managing VA-related customer transactions.

Model Management Guidance — AI/ML Model Risk

This CBUAE guidance outlines principles for managing risks associated with AI/ML models used by financial institutions. It provides specific guidance on various model types, including rating, PD, LGD, macro, interest rate risk, and net present value models. The document emphasizes governance, data analysis, model construction, validation, and monitoring.

Open Finance Regulation

The Central Bank of the UAE (CBUAE) issued the Open Finance Regulation to promote innovation, competitiveness, and efficiency in financial services. It mandates participation in the open finance framework for all CBUAE-supervised financial institutions, enabling them to access and utilize consumer financial data with user consent to create personalized experiences and tailored offerings.