Dubai: The news laws announced on Sunday will have a significant impact on the UAE’s financial sector.

“It is a significant step towards comprehensive development of the financial sector in the UAE and reinforcement of Central Bank’s independence and regulatory powers. This will promote effective control over the financial sector in line with international best practices and standards,” said Mubarak Rashed Al Mansouri, Governor of the Central Bank of the UAE.

In addition to spelling out specific licencing requirements for financial activities the law strengthens the bank’s enforcement powers to impose a broad range of administrative, financial sanctions and penalties on licensed financial institutions that are in violation of the provisions of this law.

The new enforcement powers granted will requires setting up of an independent committee, named “Grievances & Appeals Committee,” which will be established under the chairmanship of a court of appeal judge. The Committee shall have the sole and exclusive jurisdiction to decide on grievances and appeals against any decisions by the central bank related to licensing, authorisation of individuals, and licensing and designation of financial infrastructure systems.