General Requirements

1. 2.1.1.1Licensed Financial Institutions must apply the Disclosure and Transparency requirements to all Financial Products and/or Services provided through all communication channels of service including branches, telephone banking, mobile applications, internet banking and all other channels.
2. 2.1.1.2All disclosure information must be available in Arabic and English. Refer to Clause 2.3.1.3.
3. 2.1.1.3Disclosure information must be easily available in all branches and all other communication and distribution channels.
4. 2.1.1.4Information must be available in a format accessible and in a manner suitable for People of Determination or a representative nominated by such a Consumer. The Licensed Financial Institutions must assess and provide the information in the format best suitable for the Consumer.
5. 2.1.1.5Information must be in clear and plain language and presented using user-friendly sized font, color and spacing. It should incorporate appropriate visual graphics and provide examples using text boxes and tables to help educate Consumers about key financial concepts.
6. 2.1.1.6Licensed Financial Institutions must use official documents for all transactions when dealing with its Consumers. In particular, the name of the Licensed Financial Institution and a regulatory disclosure statement stating that the Licensed Financial Institution is licensed by the Central Bank must be accurately displayed in the documents. Documents must not use any other term that might indicate any out of scope unlicensed activities.
7. 2.1.1.7Licensed Financial Institutions must clearly and prominently display the full legal/trade name of the Licensed Financial Institution on the main signage of the licensed premises, websites, letterheads, business cards, transaction receipts and all other marketing/branding materials.
8. 2.1.1.8When Licensed Financial Institutions provide Advice of any kind, they must not make statements that are untrue, misleading or omit information that is necessary to understand the nature, costs, risks, terms and conditions of the Financial Products and/or Services.
9. 2.1.1.9When Specific Advice is provided to a Consumer by the Licensed Financial Institution, the Specific Advice must be documented. If a Financial Product and/or Service is sold, a copy of the Specific Advice must be provided to the Consumer.
10. 2.1.1.10Licensed Financial Institutions must continuously monitor and, improve the effectiveness of its disclosures with techniques such as Complaint analysis, Consumer satisfaction surveys, mystery shopping and Call- backs to Consumers.
11. 2.1.1.11Licensed Financial Institutions must inform Consumers about account services that are included and the account services that are optional and if there is an additional fee.
12. 2.1.1.12Licensed Financial Institutions must inform Consumers about the terms and conditions related to termination, expiry date, unclaimed balances and Fees for all payment instruments that it offers.
13. 2.1.1.13Where Licensed Financial Institutions are offering any form of rebate, gift or other incentive on their Financial Products and/or Services, Licensed Financial Institutions must clearly disclose separately the terms and conditions associated with that rebate, gift or incentive and highlight any conditions and/or restrictions. Easy and direct access must be provided to obtain the specific terms and conditions related to the rebate, gift or incentive.
14. 2.1.1.14Licensed Financial Institutions must include statements in terms and conditions, financial product disclosure documents, Key Facts Statements and application forms that will warn Consumers of consequences in the event of a Consumer’s failure to meet the Licensed Financial Institution’s terms and conditions before and during the Consumer’s relationships with Licensed Financial Institutions.
15. 2.1.1.15Licensed Financial Institutions must ensure that all warning statements required by these Standards are prominently and clearly displayed in the disclosure document, i.e. they must be in a highlight box and in bold type. Warning statements, as specified in this Standard, are to be provided during all communications with the Consumer regarding a product or service. Additional warning statements must be provided regarding potential negative financial implication on the Consumer.
16. 2.1.1.16Information on Base Lending / base financing rates or other reference rates including the effective dates of these rates must be made available on the Licensed Financial Institution’s website and mobile application and be displayed at the Licensed Financial Institution’s branch. The posting of the rates must be updated on a regular basis with each change in rates.
17. 2.1.1.17Where a contract with a Consumer has a provision for annual automatic renewal of the contract, the Licensed Financial Institution must send a written notice to the Consumer at least 30 calendar days in advance from the date of renewal. The notice must also inform the Consumer how and when the automatic renewal can be cancelled.
18. 2.1.1.18Licensed Financial Institution’s schedule for Fees, including Third Party Fees, must be clearly on display in all branches and on the Licensed Financial Institution’s website.
19. 2.1.1.19Licensed Financial Institutions must provide Consumers with a Key Facts Statement prior to providing a Financial Product and/or Service or on the Consumer’s request.
20. 2.1.1.20The Key Facts Statement should be the first document provided to the Consumer during the sales process and must be individually and clearly presented. Prior to signing the contract, the Consumer must sign to acknowledge receipt of a Key Facts Statement for the product or service being purchased.
21. 2.1.1.21Key Facts Statements specific for a Financial Product and/or Service must be offered to Consumers for any Financial Product and/or Service that is being distributed, advertised, marketed, sold or otherwise provided by Licensed Financial Institutions (including insurance/takaful and structured products).
22. 2.1.1.22The Key Facts Statement must:
    1. a.Be a stand-alone document;
    2. b.Be concise (preferably within 2 pages) and use plain language which is easy to understand;
    3. c.Provide an accurate description of each Financial Product and/or Service;
    4. d.Specify whether the Licensed Financial Institution reserves the right to change terms and conditions at a later date;
    5. e.Specify the notice period to be provided before implementing any future and Permissible change in terms and conditions;
    6. f.Specify, as applicable, related interest/profit rates, Fees, key terms & conditions, key obligations, limitations and key requirements of the financial product in a legible font size;
    7. g.Use “Warning” boxes to highlight key risks related to the purchase of Financial Products and/or Services. This should include disclosure of any assumptions made that may affect the performance of the Financial Product and/or Service, any risks that would create the potential for monetary losses or the lack of any potential gains/profit and any limitations on potential monetary gains; and
    8. h.For loan/financing products, Licensed Financial Institutions must disclose to Consumers the expected Annual interest/profit rate, any possible fees on the Credit Product and the standard formula of computing interest/profit amount as may be prescribed by the Central Bank. In addition, Licensed Financial Institutions must disclose in a prominent manner in the Key Facts Statement whether the product has a fixed, variable or a combination of fixed and variable interest/profit rate basis.

    Section 2.1.2, 2.1.3, 2.1.4 and 2.1.5 of this Article apply to Key Facts Statements.

23. 2.1.1.23Licensed Financial Institutions must provide appropriate information to the potential and existing Consumer at all stages of the relationship. All information, disclosures and other communications by Licensed Financial Institutions to Consumers must be accurate and comprehensive at each of the following 3 stages of the Consumer relationship:
    1. a.Prior to providing a Financial Product and/or Service to a Consumer: The information gathering stage before the point of sale or at the application stage. Disclosure should be made so that the Consumer has an understanding of the financial product’s features, pricing, benefits, risks, Fees and Consumer’s rights and obligations before making a decision;
    2. b.At point of entering the contract: The stage in which the Consumer is being provided with an offer and is at the stage of accepting the Financial Product and/or Service offer made by the Licensed Financial Institution; and
    3. c.During the term of the contract: The stage after the acceptance of the contract and until the end of the contract.
24. 2.1.1.24Disclosures relating to the privacy and use of personal information must be made to the Consumer in accordance with Article 6: Protection of Consumer Data and Assets of these Standards.

Prior to Providing a Financial Product and/or Service

1. 2.1.1.25Licensed Financial Institutions must provide inquiring Consumers with a copy of the terms and conditions of the Financial Product and/or Service that pertains to the inquiry. Licensed Financial Institutions must answer in Writing, any queries of Consumers relating to terms and conditions.

At Point of Entering the Contract

1. 2.1.1.26In case of rejection of any Consumer’s application for a Financial Product and/or Service by the Licensed Financial Institution, the Licensed Financial Institution must disclose the reason for rejection to the applicant except where the reason of rejection is related to Financial Crime Compliance risks or as may be prohibited by law.
2. 2.1.1.27Licensed Financial Institutions must provide Consumers with a copy of the contract to read and with appropriate time to review before signing it.
3. 2.1.1.28Licensed Financial Institutions must provide Consumers with all final documents involved in a transaction including any document that contains the signature or indication of approval of the Consumer. This applies to all documents including but not limited to the offer, contract, terms and conditions, security and guarantee. Documents must be provided free of charge regardless of how they are provided.
4. 2.1.1.29Where there is a guarantor or more than one Person signing a contract for a Financial Product and/or Service, each Person must be given copies of the documents free of charge.
5. 2.1.1.30Consumers must be offered a choice of which document format they wish to receive the initial copies of the documents.
6. 2.1.1.31Where a Cooling-off Period is required to be provided by these Standards or prescribed by the Central Bank, Consumers must be informed of their right to a Cooling-off-Period at time of signing the contract for the purchase of a Financial Product or Service. Where a longer Cooling-off period is specified by way of other legal or regulatory requirements, the longer period must be applied.
7. 2.1.1.32Consumers may waive the Central Bank’s required Cooling-off Period of complete 5 business days by signing a written waiver provided by the Licensed Financial Institution containing a warning about agreeing to an immediate commitment.
8. 2.1.1.33The underlying Shari’ah contracts for Shari’ah-compliant financial products should include a clause granting the Consumer Cooling-off option (Khiyar Al-Shart) for a period of 5 complete business days in accordance with the provisions contained in the Civil Transactions Law and the relevant Shari’ah standards.
9. 2.1.1.34Where a Licensed Financial Institution is required to carry out an assessment of a Consumer regarding the suitability, affordability and/or appropriateness of a Financial Product and/or Service, a copy of the summary of the results of the assessment must be provided to the Consumer without charge except as may be prohibited by law.
10. 2.1.1.35Licensed Financial Institutions must disclose in a prominent manner to a Consumer whether the interest/profit rate charged on a Credit Product is variable or fixed or a combination of the variable and fixed rate, where applicable, and the method of calculation of the rate.
11. 2.1.1.36Where a Base Lending / base financing Rate forms part of the final interest/profit rate offered to a Consumer, Licensed Financial Institutions must disclose to the Consumer the separate components of the rate i.e. Base Lending / base financing Rate + X basis points. Licensed Financial Institutions must explain and provide a clear example of the concept of the Base Lending / base financing Rate and the potential frequency at which the rate will be revised as well as where the rates will be publicly posted.
12. 2.1.1.37Licensed Financial Institutions must disclose all Fees that are applicable to Consumers and provide Consumers with a copy of the Fees specific to the Financial Product and/or Service, at the time of signing a contract or upon a Consumer’s request at any time. Licensed Financial Institutions must explain the amount and calculation methodology of all applicable Fees. The Licensed Financial Institution must disclose to the Consumer that Third Party Fees may apply and disclose the amount. If the amount is not known, the Licensed Financial Institution should endeavor to provide an estimate or range.
13. 2.1.1.38Licensed Financial Institutions must disclose whether the Fees to be charged to the Consumer are one time or recurring. In cases where Fees are recurring, Licensed Financial Institutions must disclose the frequency of recurrence and the time period over which the amount will continue to be charged to the Consumer.
14. 2.1.1.39Licensed Financial Institutions must advise Consumers on what they can do to protect their accounts from fraud and misuse and must ensure that Consumers are fully aware of the consequences of granting an unauthorized Person and/or Third Parties access to their bank accounts and any other Financial Product and/or Service. In particular, Licensed Financial Institutions must inform Consumers of the consequences of sharing their personal information, personal identification number (PIN) and other security information.
15. 2.1.1.40Licensed Financial Institutions must inform Consumers of the process and contact method to follow in reporting a lost or a stolen card and in case of Unauthorized Transactions on their accounts.
16. 2.1.1.41Licensed Financial Institutions must inform Consumers that they are responsible for:
    1. a.Keeping their banking correspondence secure for future reference;
    2. b.Verifying the accuracy of any account / transaction statements sent to them; and
    3. c.Confirming to the Licensed Financial Institution, their contact information and identification when changes occur or as requested. Requests for subsequent confirmation of information from a Licensed Financial Institution must be executed in a secure manner.
17. 2.1.1.42Islamic Financial Institutions (IFIs) which offer Shari’ah compliant products must disclose the Shari’ah basis of the Financial Product and/or Service and the approval from the Internal Shari’ah Supervision Committee. The Shari’ah basis should also be included in the Key Facts Statement.

During the Term of the Contract

1. 2.1.1.43During the term of the contract, Licensed Financial Institutions must provide Consumers with a regular detailed statement including all transactions that occurred in an account for a Financial Product and/or Service:
   1. a.The statement must include key information that fully informs the Consumer as to the amount, type and status of the transactions in the account(s); and
   2. b.No Fees can be charged for original statements provided to the Consumer.

Sections 2.1.2, 2.1.3, 2.1.4 and 2.1.5 of this Article contain further details on statements to be shared during the term of the contract.

1. 2.1.1.44Licensed Financial Institutions must inform Consumers of all transactions on their accounts as they occur, by sending a free SMS to a mobile phone or, if requested, to the Consumer’s email address. The details of such transactions must be available on the Consumer’s mobile or internet banking platforms.
2. 2.1.1.45In case of digital transactions, the Licensed Financial Institution must communicate specific information to the Consumer upon receiving transaction requests and upon execution of the transaction as prescribed by the Central Bank.
3. 2.1.1.46Licensed Financial Institution cannot change terms and conditions of a contract unless this has been clearly, separately, and prominently disclosed and agreed by way of expressed consent by the Consumer.
4. 2.1.1.47If the Licensed Financial Institution decides to make Permissible changes to the contract, the Licensed Financial Institution must give Consumers a minimum of 60 calendar days’ notice before changes to the terms and conditions of a Financial Product and/or Service, including changes to Fees, can take effect, with exception provided by Clause 2.1.1.36 and 2.1.3.21 regarding lending Rates.
5. 2.1.1.48In the notification to Consumers of Permissible changes to the terms and conditions of a contract, the Licensed Financial Institutions must provide a plain language summary of the key changes along with a copy of the revised Terms and Conditions.
6. 2.1.1.49Where there is a Permissible change in the methodology to calculate rates and Fees, the Licensed Financial Institution must disclose the revised methodology to the Consumer by way of written notice that must be provided 60 calendar days in advance of the change taking effect.
7. 2.1.1.50When a Consumer or the Licensed Financial Institution transfers or closes a Consumer’s account except for credit cards and investment accounts, the Licensed Financial Institution must issue to the Consumer a final closing account statement, identified as such, within 7 complete business days of the Consumer requesting the transfer or closure of the account.
8. 2.1.1.51When intending to close, merge or move a branch of a Licensed Financial Institution, the Licensed Financial Institution must:
   1. a.Notify the Central Bank immediately in the manner as may be prescribed by the Central Bank;
   2. b.Provide at least 60 calendar days’ written notice to affected Consumers to enable them to make alternative arrangements;
   3. c.Post a notice that is clearly visible to Consumers in the closing branch and stating the date of closing of the branch;
   4. d.Disclose how continuity of service will be provided to the Consumer; and
   5. e.Disclose this information on their website.