Law expands Central Bank powers to safeguard stability and protect consumers
Dubai: The UAE President has enacted a new Federal Decree-Law governing the Central Bank, financial institutions, and insurance operations. Among its most significant measures: “Increasing administration fine to be commensurate with the gravity of the violations and the volume of transactions, up to ten times the value of the violation.”
Under the decree, licensed banks and insurers must ensure universal access to financial services, strengthen consumer protection by centralising complaints systems, and enable early intervention when a licensed entity shows signs of financial strain. The law also introduces automatic debit of fines pending judicial rulings and mandates public disclosure of penalties on the Central Bank’s website.
The decree reinforces key objectives: preserving currency stability, protecting the integrity of the financial system, and ensuring prudent management of foreign exchange reserves. Financial institutions are now required to hold adequate guarantees when extending credit to individuals and sole proprietorships.
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