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.

General Requirements

1. 2.1.2.1Licensed Financial Institutions that offer Deposit Products must comply with the requirements in Section 2.1.1 of this Article as applicable, in addition to complying with the requirements of this Section.

Prior to Providing a Deposit Product and/or Service

1. 2.1.2.2Where a Licensed Financial Institutions offers low cost savings account and / or current account, they must be transparent and inform the Consumer of the availability of a low cost savings account and / or current account and disclose the key features of such accounts.
2. 2.1.2.3Licensed Financial Institutions must disclose if the account type requires an initial deposit to open the account and a minimum balance to be maintained in that type of account. The disclosure must warn the Consumer of the consequence of not maintaining a minimum (daily / monthly) balance in the account including the imposition of any Fee.
3. 2.1.2.4Licensed Financial Institutions must disclose the expected Annual Interest/Profit Rate that will be paid on the deposit, the frequency of interest/profit payments and any circumstances that might affect the amount or frequency of the interest/profit payments.
4. 2.1.2.5Licensed Financial Institutions must disclose all Fees on both standard and additional/optional services applicable to the deposit account to Consumers.

At Point of Entering the Contract

1. 2.1.2.6Licensed Financial Institutions must inform Consumers of the implication of redeeming a fixed deposit before maturity. Licensed Financial Institutions must disclose any penalty applied to the interest/profit rate or Permissible Fees applicable to early closure of deposit account within a specified time frame.
2. 2.1.2.7For accounts with a cheque book facility, Licensed Financial Institutions must inform Consumers in Writing of:
   1. a.Any limit on the number of cheques permitted in their cheque book; and
   2. b.The repercussions of returned cheques including fees, closure of the current account and / or a negative report to the Credit Information Agency.
3. 2.1.2.8Licensed Financial Institutions must inform Consumers of the communications channel that Consumers can use to obtain periodic transaction account statements on their deposit accounts.

During the Term of the Contract

1. 2.1.2.9Licensed Financial Institutions must, at minimum on a monthly basis, provide the Consumer with a free transaction account statement (electronic or paper) which must include, where applicable:
   1. a.Account Number/ID;
   2. b.Name(s) on the Account;
   3. c.The time period covered by the statement;
   4. d.The opening balance;
   5. e.Each deposit;
   6. f.Each withdrawal;
   7. g.Breakdown of any interest/profit credited;
   8. h.Breakdown of all Fees by amount and type;
   9. i.The end of statement period closing balance;
   10. j.Term dates on fixed deposits;
   11. k.Early redemption penalties;
   12. l.Explanations of the interest/profit rate applied if fixed, or if variable, the annual rate on the account during the period covered by the statement; and
   13. m.Information on how to file a Complaint with the Licensed Financial Institution which includes, at minimum, the contact details of the Licensed Financial Institution’s Complaint function, channels for lodging Complaints (e.g. by email, phone, fax etc.) and response time to address Complaints.
2. 2.1.2.10Licensed Financial Institutions must inform Consumers of any Permissible changes in Annual Interest/Profit Rates on their deposit products. Refer to Clause 2.1.3.21.
3. 2.1.2.11If an account is to become dormant, free reminders must be sent to the Consumer informing them about the impending dormancy, as may be prescribed by the Central Bank.
4. 2.1.2.12Licensed Financial Institutions must inform Consumers of their decision to close a Consumer’s account 60 calendar days in advance of the account being closed and provide in Writing, the reasons for closure. If the Licensed Financial Institution has reasonable grounds to believe there may be financial crime risks and potential fraud, Licensed Financial Institutions can immediately close or block an account without providing the advanced notice or reasons to the Consumer.

Disclosure Requirements for Shari’ah Deposit Products

1. 2.1.2.13IFIs which offer Shari’ah compliant Deposit Products must comply with the requirements in Section 2.1.2 of this Article as applicable, in addition to complying with the below requirements.
2. 2.1.2.14IFIs which offer Shari’ah compliant Deposit Products to Consumers must:
   1. a.Explain briefly the Shari’ah concepts applicable to the Deposit Product, including the rights and obligations of the Consumer;
   2. b.Disclose that funds are invested and managed in accordance with Shari’ah requirements;
   3. c.Disclose the profit-sharing ratio, weights and profit distribution method by the Licensed Financial Institution for deposits under the mudarabah concept, including the frequency of profit payment. For Deposit Products with fixed tenor, the Licensed Financial Institution should disclose the historical profit rates to facilitate comparison by the Consumer; and
   4. d.Disclose if a minimum deposit amount is required for the account to be eligible for profit sharing.

General Requirements

1. 2.1.3.1Licensed Financial Institutions that offer Credit Products must comply with the requirements in Section 2.1.1 of this Article as applicable, in addition to complying with the requirements of this Section.

Prior to Providing a Credit Product and/or Service

1. 2.1.3.2Licensed Financial Institutions must provide Consumers with the expected Annual Percentage Rate that will be charged on the offered Credit Product to facilitate comparison between Credit Products and between institutions.
2. 2.1.3.3Licensed Financial Institutions must disclose whether security, a guarantor, co-signer or collateral is required for a Credit Product before the consumer signs the contract. Licensed Financial Institutions must fully disclose the purpose of these requirements and the conditions placed on the pledging of security and any other collateral including the Licensed Financial Institution’s rights to dispose of them and the manner in which they may be disposed.

At Point of Entering the Contract

1. 2.1.3.4Licensed Financial Institutions must disclose:
   1. a.How the interest/profit on the Credit Product will be calculated (including the date from which interest/profit is incurred) and provide an example of the calculation to the Consumer; and
   2. b.How the payments are allocated between outstanding balance and interest / profit as per the Reducing Balance Method.
2. 2.1.3.5Licensed Financial Institutions must disclose that they are not permitted to charge interest/profit on accrued interest/profit of any Credit Product granted to Consumers in accordance with Article (121), Clause 3 in Decretal Federal Law No. (14) of 2018, Regarding the Central Bank & Organization of Financial Institutions and Activities.
3. 2.1.3.6For variable rate loans/financing, Licensed Financial Institutions must disclose to Consumers the potential impact of an increase in the Annual Interest/Profit Rate on the loan/financing. The disclosure must explain via an illustrative example:
   1. a.The potential consequences of an increase to the rate on the loan/financing payment amounts;
   2. b.The change in the allocation of the payment between interest/profit amount and a reduction in outstanding balance;
   3. c.The impact on the tenor if any; and
   4. d.The consequences of any increase in rates on the amount of a deferred payment or an accumulated balloon payment during or at the end of the loan/financing tenor.
4. 2.1.3.7Licensed Financial Institutions must disclose whether early settlement is possible and which Permissible Fees are payable if the Credit Product is terminated before the end of the tenor along with, how the Fees will be calculated and when they are payable.
5. 2.1.3.8The Key Facts Statement on a financing product must set out a detailed example relevant to the product with the calculation and cost of the applicable Early Settlement Fees where applicable.
6. 2.1.3.9When a Licensed Financial Institution decides to sell a Credit Product to a Consumer, the Licensed Financial Institution must issue a written offer that contains the approved loan/financing amount, all the terms and conditions and for financing with a tenor, the cumulative total of all repayment/payment amounts to be paid by the end of the tenor based on the initial interest / profit rate, and a separate amount that will total the expected amount of interest/profit that would be paid over the tenor.
7. 2.1.3.10Licensed Financial Institutions must inform Consumers that funds approved on a Credit Product, except for mortgages and credit cards, will be disbursed within 10 complete business days of signing the contract or within such other time frame that is agreed to and specified in the contract. Complying with the period of time for disbursement of funds is subject to the Consumer and / or third party providing the required and properly completed documents and meeting the agreed conditions. If it is not possible to release the funds within the time limit, the Licensed Financial Institution must advise the Consumer in Writing immediately as to the reason for the delay and the date by which the funds will be available. As a consequence of the delay caused by the Licensed Financial Institution, the Consumer retains the option to cancel the contract without cost or penalty before the funds are made available.
8. 2.1.3.11At the point of entering the contract, except for credit cards, Licensed Financial Institutions must provide Consumers with a complete repayment/payment schedule document including the following but as may be applicable:
   1. a.The initial amount of the loan/financing;
   2. b.The Annual Interest/Profit Rate including whether it is fixed or variable;
   3. c.The expected tenor;
   4. d.The date of the first installment;
   5. e.The number of installments to be paid;
   6. f.The frequency of repayment/payment;
   7. g.The amount to be paid for each installment;
   8. h.The allocation of each installment between the principal and interest/profit payments;
   9. i.The decline in principal amount of the loan/financing with each payment; and
   10. j.The total cost of the loan/financing in terms of the total interest/profit paid by the Consumer.
9. 2.1.3.12For Shari’ah compliant financing products:
   1. a.Licensed Financial Institutions must inform a Consumer when late payment Fees/commitment for contribution towards charity will be imposed and the amount to be imposed. Licensed Financial Institutions must also disclose to Consumers the manner in which the late payment Fees/commitment for contribution towards charity will be calculated; and
   2. b.Late payment Fees/commitment for contribution towards charity must be based on an administrative cost and must not include any remuneration to the Licensed Financial Institution that could be considered unlawful charging of interest/profit on accrued interest/profit.
10. 2.1.3.13Where Licensed Financial Institutions offer or market insurance/takaful products and/or services associated with the credit/financing product, Consumers must be informed in Writing that they have the choice to accept or reject the offer of insurance/takaful.
11. 2.1.3.14In addition to any other UAE regulator’s requirements regarding the sale and marketing of insurance/takaful, Licensed Financial Institutions must at a minimum:
    1. a.Explain the nature, purpose, coverage and limitations of coverage;
    2. b.Disclose its suitability for the Consumer;
    3. c.Disclose termination conditions including any obligations related to future insurance/takaful payments/ premiums; and
    4. d.Disclose the Fees (including associated commissions) paid with the sale of such an insurance/takaful product.

The Licensed Financial Institution must obtain the Consumer’s expressed consent for insurance/takaful independently of signing application forms or the contract for offering insurance/takaful. The appropriate Cooling-off Period will apply. This Section must be read in conjunction with the Section on Cooling-off Period of Article 5: Business Conduct of these Standards. Refer to Clause 2.1.1.31.

1. 2.1.3.15Where insurance/takaful coverage is a mandatory component of the Credit/Financing Product and/or Service, the Licensed Financial Institutions must disclose the purpose of the insurance/takaful. The Licensed Financial Institution must disclose the costs of the Licensed Financial Institution’s insurance/takaful product in Writing to the Consumer and inform the Consumer that the Consumer has the right to choose an insurance/takaful provider from minimum choice of 3 insurance/takaful providers approved by the Licensed Financial Institution. The Consumer should inform the Licensed Financial Institution of the choice of insurance/takaful provider within a reasonable period of time. If the Consumer does not inform Licensed Financial Institutions of the choice of a provider, the Licensed Financial Institution has the right to choose an insurance/takaful provider from the approved insurance/takaful providers presented to the Consumer.

The Licensed Financial Institution must also disclose to the Consumer if the insurance/takaful provider belongs to the same group of institutions as the Licensed Financial Institution.

1. 2.1.3.16If the Consumer decides to acquire insurance/takaful through the Licensed Financial Institution, the Consumer must be informed of any additional costs that may be incurred if the insurance/takaful costs are added to the loan/financing principal and thereby incurring the additional interest/profit costs.
2. 2.1.3.17When a Credit Product that is offered to a Consumer includes a balloon or deferred payment(s), or the option of a balloon or deferred payment, Licensed Financial Institutions must explain to the Consumer verbally and in Writing the concept of a balloon or deferred payment and the risks associated with the credit/financing product. Specifically before entering the contract, Licensed Financial Institutions must provide the Consumer with an explanation of the repayment/payment schedule and clearly outline the scheduling and amount of the balloon or deferred payments. The Consumer must acknowledge in Writing that this has been fully disclosed to him/her by the Licensed Financial Institution.
3. 2.1.3.18Licensed Financial Institutions must disclose to Consumers that a Credit Product cannot exceed its authorized limit or be allowed to draw on an overdraft facility and that any transaction resulting in the limit being exceeded may be rejected and may incur Fees.

During the Term of the Contract

1. 2.1.3.19Licensed Financial Institutions must, at minimum, on a quarterly basis for credit/financing facilities and at minimum on a monthly basis for credit / payment instruments, provide Consumers with a free statement of transactions (electronic or paper) which must include:
   1. a.Account Number/ID or Card Number/ID;
   2. b.Name(s) of Consumer(s);
   3. c.The date of the statement and the period covered by the statement;
   4. d.Next payment due date;
   5. e.The opening balance;
   6. f.Each transaction and the date of the transaction;
   7. g.The allocation of each payment between the outstanding balance and interest/profit payments (for loan/financing facilities);
   8. h.All interest/profit charged (for credit cards, Annual Interest/Profit Rate charged must be disclosed separately);
   9. i.All Fees transactions identified and totaled separately;
   10. j.Foreign exchange rate applied to each foreign exchange transaction (applicable to credit / payment card statements);
   11. k.The outstanding balance due;
   12. l.In case of balloon payments, the statement must clearly identify the balloon payment and future date due;
   13. m.In case of deferred payments, the statement must clearly identify the deferred amount and future date due;
   14. n.Details of the Annual Interest/Profit Rate applied during the period covered by the statement; and
   15. o.Information on how to file a Complaint with the Licensed Financial Institution which includes, at minimum, the contact details of the Licensed Financial Institution’s Complaint channels for reporting disputed transactions and lodging Complaints (e.g. by email, phone, fax etc.) and response time to address Complaints.
2. 2.1.3.20In addition to the above, a Credit Product statement for credit cards must also explain the cost that would be incurred if the Consumer does not make a full payment for the total amount outstanding by the payment due date by disclosing:
   1. a.The length of time it would take to fully settle the cardholder’s actual existing balance outstanding including the costs of total interest/profit if the Consumer only pays the minimum payment and there is no new transaction on the credit card during that period;
   2. b.The minimum payment amount that would be due; and
   3. c.The following warning statement:

1. 2.1.3.21Where any change in the Annual Interest/Profit Rate of a Credit Product is permitted, Licensed Financial Institutions must notify Consumers of the change. Where the rate change is an increase to the part of the Consumer’s interest/profit rate that is added to the variable Base Lending Rate/Financing Rate, the Licensed Financial Institution must not increase that part of the interest/profit rate until after the 30 calendar days’ notice period. This notification must include:
   1. a.The date from which the new rate will change;
   2. b.Details of the old and new rate;
   3. c.The details of the impact on the allocation of payments towards principle and interest/profit amount;
   4. d.If applicable, the revised repayment/payment amount; and
   5. e.The contact information for the unit in the Licensed Financial Institution that will respond to Consumers regarding the change and / or where the Consumer anticipates difficulties meeting any resulting higher repayments/payments.
2. 2.1.3.22Licensed Financial Institutions must ensure that a Consumer is immediately advised in Writing when a payment is missed for more than calendar 30 days past its due date.
3. 2.1.3.23When the Consumer is 2 payments in Arrears, the Licensed Financial Institution must advise the Consumer in Writing of the possible consequences of the Arrears as deemed appropriate by the Licensed Financial Institution, including:
   1. a.Legal action;
   2. b.Foreclosure;
   3. c.Redemption of security;
   4. d.Demand for payment from the guarantor; and
   5. e.Negative reporting with the Credit Information Agency.
4. 2.1.3.24Licensed Financial Institutions must disclose to Consumers the amount of late payment Fees and the dates they were incurred.
5. 2.1.3.25In the event of sale or transfer by a Licensed Financial Institution of a Consumer’s Credit Product to a Third Party, the Licensed Financial Institution must ensure that a Consumer is advised in Writing, 60 calendar days in advance of the sale or transfer and notified of the name of the Third Party unless otherwise instructed by the Central Bank.

Disclosures Requirements for Shari’ah Financing Products

1. 2.1.3.26IFIs which offer Shari’ah compliant financing products must comply with all the requirements in Section 2.1.3 of this Article, in addition to complying with the below requirements.
2. 2.1.3.27IFIs which offer Shari’ah compliant financing products to Consumers must:
   1. a.Explain briefly the Shari’ah concepts applicable to the financing product; and
   2. b.Indicate any takaful/insurance that is required as a condition of the financing product.
3. 2.1.3.28IFIs must comply with the specific early settlement disclosure requirements set by the Central Bank.

General Requirements

1. 2.1.4.1Licensed Financial Institutions that offer structured investment products must comply with the requirements in Section 2.1.1 of this Article as applicable, in addition to complying with the requirements of this Section.

Prior to Providing a Structured product

1. 2.1.4.2Licensed Financial Institutions must disclose to the Consumers the details of the bank or entity issuing the structured product including the name and contact information of the entity.
2. 2.1.4.3Licensed Financial Institutions must disclose to the Consumers the responsibilities of the Consumer’s Licensed Financial Institution and that of the entity issuing the product regarding the sales, performance and management of the structured product.
3. 2.1.4.4Licensed Financial Institutions must disclose the name of the regulatory entity who regulates the product. Where a Licensed Financial Institution intends to use a Third Party to develop a structured product on its behalf for its Consumers, it must disclose this fact and whether the Third Party is regulated within the UAE.

At Point of Entering the Contract

1. 2.1.4.5Licensed Financial Institutions offering any structured product must provide Consumers with disclosure information on the structured product as may be relevant to the Consumer including:
   1. a.Capital security (any guarantee provided on the whole or portion of the principal amount of investment);
   2. b.The level, nature, extent and limitations of any guarantee on the principal and/or returns;
   3. c.The name of the guarantor of any guarantees and the credit worthiness of the guarantor if rated by an accredited credit rating agency;
   4. d.The risk that some or all the investment may be lost;
   5. e.The risk of using leveraging on an investment and an explanation with an example as to the full cumulative effects on losses of initial capital investment, the potential extraordinary losses possible due to leveraging and that it could result in the possible liquidation of the Consumers pledged assets;
   6. f.Any limitations/restrictions on the sale or early redemption of the funds invested;
   7. g.The consequences, including the cost, of exiting the product early;
   8. h.Description of any assumptions or calculations used to determine performance/cost of the investments including detailed, clear examples where the assumptions are met and failed to be met, and the consequences it has on the investment;
   9. i.The risk or likelihood that the estimated or anticipated return on the product will not be achieved;
   10. j.The potential effects of volatility in price and fluctuation in interest/profit rates and/or movements in exchange rates and underlying securities on the value of the investment; and
   11. k.Separate disclosure of each type of fee and amount associated with the management, purchase, sale, set up and administration of the product and investment account.
2. 2.1.4.6Licensed Financial Institutions must provide a copy of its assessment as to the suitability of the product based on the financial and risk profile of Consumer including the following warning statement with all numerical illustrations of investment performance:

During the Term of the Contract

1. 2.1.4.7Licensed Financial Institutions must, at minimum, on a quarterly basis, provide to Consumers a statement on their investment which must include, as applicable:
   1. a.The date of the statement and the period covered by the statement;
   2. b.The initial value of the investment at the time the investment was first made;
   3. c.The opening balance or value at the start of the quarter;
   4. d.Each addition to the account including additional amounts invested and the respective dates of the transaction;
   5. e.Each withdrawal and the respective dates of the transaction;
   6. f.The total actual balance at end of the quarter;
   7. g.The number of units held;
   8. h.Disclosure as to the net interest/profit and loss when comparing the cumulative total amount invested at the start against the market value of the investment shown at the end of this quarterly statement;
   9. i.Separate disclosure of each type of Fee and amount associated with the management, administration, sale, set up and ongoing administration of the structured product and investment account; in addition, a cumulative total of these Fees since the investment was initiated must also be disclosed; and
   10. j.Information on how to file a Complaint with the Licensed Financial Institution which includes, at minimum, the contact details of the Licensed Financial Institution’s Complaint function, channels for disputing a transaction or lodging Complaints (e.g. by email, phone, fax etc.) and response time to address Complaints.

Disclosure Requirements for Shari’ah Compliant Structured products

1. 2.1.4.8IFIs which offer Shari’ah compliant structured products must comply with the requirements in Section 2.1.4 of this Article as applicable, in addition to complying with the below requirements.
2. 2.1.4.9IFIs which offer Shari’ah compliant structured products to Consumers must:
   1. a.Explain in plain language the Shari’ah concepts applicable to the investment accounts including the rights and obligations of Consumers;
   2. b.Disclose to Consumers that any losses arising from the investment (other than losses caused by misconduct, negligence or breach of terms and conditions by the Licensed Financial Institution) must be borne by the Consumers;
   3. c.Disclose that investment account funds are invested and managed in accordance with Shari’ah requirements; and
   4. d.Disclose the minimum amount required to open an investment account. Consumers should also be warned of the consequences of premature termination of the investment account, including forfeiture of profits.
3. 2.1.4.10In the case of a Licensed Financial Institution offering Shari’ah compliant profit-sharing investment account to Consumers, Licensed Financial Institutions must provide:
   1. a.The profit-sharing ratio between the Licensed Financial Institution and Consumer;
   2. b.The profit distribution method;
   3. c.How and when the Licensed Financial Institution will pay profit and repay the principal;
   4. d.How funds may be dealt with upon maturity; and
   5. e.Additional Fees or change in profit rate resulting from a withdrawal in advance of maturity.

General Requirements

1. 2.1.5.1Licensed Financial Institutions that offer remittance, transfer and foreign exchange products and/or services must comply with the requirements in Section 2.1.1 of this Article as applicable, in addition to complying with the requirements of this Section.
2. 2.1.5.2Licensed Financial Institutions must provide to Consumers clear information about all applicable Fees imposed on any services and the applicable buy and sell exchange rate. Where available, the Licensed Financial Institution should endeavor to disclose the Fees imposed by the correspondent bank or financial institution or the disbursing remittance service provider. Where Fees are not available, the Licensed Financial Institution should endeavor to provide an estimate or range and provide a disclaimer that states that the transfer may be subject to additional charges.
3. 2.1.5.3Licensed Financial Institutions must prominently display the following at all public locations where consumers are served, during working hours and in a prominent place of the Licensed Institution’s premises clearly visible to Consumers:
   1. a.Buy and sell rates for money exchanged against the local currency (i.e. AED) for all major foreign currencies that the Licensed Financial Institution deals and posted under the headings “we buy” and “we sell”; and
   2. b.Buy rates for remittances in major foreign currencies that the Licensed Financial Institution deals in against the local currency.

Pre-Transaction

1. 2.1.5.4Licensed Financial Institutions who carry on money changing and / or other foreign exchange activities must disclose the exchange rate, the difference between the buy and sell rate on a transaction and the Fees imposed by the Licensed Financial Institution for transactions prior to providing the money exchange, remittance, transfer and foreign exchange product and/or service. The exchange rate, the difference between the buy and sell rate on a transaction and Fees must be shown separately to the Consumer.
2. 2.1.5.5Licensed Financial Institutions who carry on remittance activities, must, where possible, disclose to Consumers the following prior to undertaking any remittance transaction:
   1. a.The information set out in Clause 2.1.5.4;
   2. b.The amount in the currency that is expected to be paid to the beneficiary with a warning box that the amount may be subject to additional costs;
   3. c.The Fees imposed by the correspondent bank or financial institution, if known;
   4. d.A clear warning that there may be additional and significant costs charged by the receiving entities should there be Errors / omissions in the remittance information provided by the Consumer causing a rejection of, or delays in the transfer;
   5. e.The estimated time for the funds to be transferred to the beneficiary with a warning box that the time taken to transfer funds can be delayed;
   6. f.The name of the correspondent bank or financial institution, contact information and location where the funds will be available for collection by the beneficiary; and
   7. g.Clear information on procedures for the cancellation of transactions by Consumers which must include the period of time within which the cancellation request can be made by a Consumer, the fact that exchange rate used for the refund of money paid by the Consumer may differ from the original rate used for the transfer, and any costs which could be incurred for the cancellation caused by the Consumer.

Post Transaction

1. 2.1.5.6Licensed Financial Institutions must include the following information in a receipt issued to its Consumers:
   1. a.Licensed Financial Institutions who carry on money changing or wholesale currency activities:
      1. i.The legal name and contact details (address, phone and email address of the branch) of the Institution;
      2. ii.The date and time of the transaction;
      3. iii.The remittance, transfer and foreign exchange product name;
      4. iv.The serial number for the receipt;
      5. v.The amount paid and the type of currencies tendered by the Consumer;
      6. vi.The amount and the type of currencies issued to the Consumer;
      7. vii.The rate of exchange applied and the buy and sell rate;
      8. viii.The transaction Fees for services rendered to the Consumer including where possible charges that maybe levied by correspondent banks or financial institutions or agents;
      9. ix.Terms and conditions and additional Consumer information as prescribed by the Central Bank; and
      10. x.Information on how to file a Complaint with the Licensed Financial Institution which includes, at minimum, the contact details of the Licensed Financial Institution’s Complaint function, channels for lodging Complaints (e.g. by email, phone, fax etc.) and response time to address Complaints.
   2. b.Licensed Financial Institutions who carry on remittance activities:
      1. i.Requirements outlined in sub-clause a.;
      2. ii.The name of the sender;
      3. iii.The name of the beneficiary;
      4. iv.The beneficiary bank account details (account number and branch name);
      5. v.The destination country;
      6. vi.The amount paid of funds to be remitted in AED and its equivalent in foreign currency to be received by the beneficiary;
      7. vii.Where the correspondent institution is not a bank, the name of the correspondent institution or the name of the instant money transfer service provider through which the remittance is routed, contact information and location, where known; and
      8. viii.Information on how to file a Complaint with the Licensed Financial Institution which includes, at minimum, the contact details of the Licensed Financial Institution’s Complaint function, channels for lodging Complaints (e.g. by email, phone, fax etc.) and response time to address Complaints.