7.1 This Regulation shall be published in the Official Gazette in both Arabic and English and shall come into effect one month from the date of publication.

We, Khalifa Bin Zayed Al-Nahayan, the President of the United Arab Emirates,

- Having pursued the Constitution;
- Federal Law No. (1) of 1972, concerning to the Competencies of the Ministries and Powers of the Ministers and its amendments;
- Federal Law No. (5) of 1975 concerning the Commercial Register;
- Federal Law No. (26) of 1981 concerning Marine Commercial Law and its amendments;
- Federal Law No. (5) of 1985 concerning the promulgation of Civil Transactions Law and its amendments;
- Federal Law No. (3) of 1987 concerning the promulgation of Penal Code and its amendments;
- Federal Law No. (11) of 1992 concerning the promulgation of The Civil Proceedings Law and its amendments;
- Federal Law No. (35) of 1992 concerning the promulgation of The Criminal Proceedings Law and its amendments;
- Federal Law No. (21) of 1995, concerning Federal Traffic Law and its amendments;
- Federal Law No. (1) of 2006 concerning the Electronic Commerce and Transactions;
- Federal Law No. (6) of 2007 concerning the Establishment of the Insurance Authority & Organization of its Operations and its amendments;
- Federal Law No. (2) of 2008 concerning the National Societies and Associations of Public Welfare;
- Federal Law No. (2) of 2015 concerning Commercial Companies and its amendments;
- Federal Decree Law No. (9) of 2016 on Bankruptcy;
- Federal Law No. (14) of 2016, concerning Offences and |Administrative Sanctions in the Federal Government; and
- Based on the proposal made by the Minister of Economy and the approval of the Cabinet and the Federal National Council and as ratified by the Federal Supreme Council,

Have promulgated the following Law:

Article One

Articles numbers: (1), (23), (25), (28), (35), (41), (95), (99) and (110) of Federal Law No. (6) of 2007 referred to herein shall be replaced by the following texts:

Article (1):

The following words and phrases shall bear the meanings indicated beside each of them unless the context provides otherwise:

State: The United Arab Emirates.

Ministry: The Ministry of Economy.

Minister: The Minister of Economy.

Authority: The Insurance Authority established by virtue of the provisions of the law herein.

Board: The Insurance Authority's Board of Directors.

Chairman: The Chairman of the Board.

Director General: The Director General of the Insurance Authority.

Company: The insurance company incorporated in the State and the foreign insurance company licensed to carry out insurance activities in the State either through a branch, or through an insurance agent.

Insurer: Any insurance company incorporated in the State or foreign company licensed to carry out insurance operations in the State according to the provisions of the Law herein.

Insured: The person who has concluded an insurance contract with the company.

Insurance Agent: The person approved and authorized by the company to carry out insurance operations on its behalf or on behalf of any branch thereof.

Insurance Policy (Insurance Contract): The insurance document (policy) concluded by the insurer and insured containing the terms and conditions of the contract between the two parties, their obligations, and rights or the rights of beneficiary of the insurance and any endorsements therein.

Re-insurer: Any re-insurance company incorporated in the State or foreign re-insurance company licensed to carry out insurance operations inside the State or a foreign re-insurance company outside the State.

Insurance Broker: The person who independently intermediates in insurance and reinsurance operations between the insurance or re-insurance Proposer on one side and any insurance or reinsurance company on the other side and receives for his efforts commission from the insurance company or the re-insurance company with which the insurance or re¬insurance has been concluded.

Surveyor & Loss Adjuster: The person who examines the damages occurred to the subject matter of the insurance, and assesses them.

Insurance Consultant: The person, who studies the insurance requirements for his clients, gives advice in respect of the suitable insurance coverage, assists in preparing insurance requisites and receives for his efforts remuneration from his clients.

Actuary: The person who estimates values of the insurance contracts, policies and the related accounts.

Insurance-related Professions: Any person licensed by the Authority to practice any of the activities of Insurance Agent, Actuary, Insurance Broker, Surveyor & Loss Adjuster, Insurance Consultant or any other insurance-related profession that the Board decides to regulate.

Register: The register of insurance companies or insurance agents.

Data: All data and information (both paper and electronic) relating to any insurance activity, including data related to individuals who can be identified, directly or indirectly.

Branch: The branch of the company that carry out insurance operations in its name.

Authorized Manager: The person appointed by the foreign insurance company to manage its branch in the State.

Beneficiary: The person who acquired the rights of the insurance contract at inception or these rights has been legally transferred thereto.

Technical Provisions: The provisions which the insurer must deduct and maintain to meet the insured's accrued financial obligations pursuant to the provisions of the law herein.

Solvency Margin: The surplus in the value of the company's real assets over its liabilities that enables it to fulfil its obligations in full and to pay the required indemnities right away when they befall due without impeding the company operations or weakening its financial position.

Minimum Guarantee Fund: The amount that equates one third of the required solvency margin or the amount determined by the Board whichever is the greater.

Auditor: The accounts' auditor licensed to practice work in the State.

Person: Any natural or legal person.

Article (23):

The Board shall issue on a recommendation by the Director General the bylaws, regulations, instructions and decisions pertinent to the insurance operations including:

1. The Solvency Margin and the Minimum Guarantee Fund, provided the same shall not be less than one third of the Solvency Margin taking the international standards into consideration,
2. The basis of calculating the Technical Provisions,
3. The Re-insurance criteria,
4. The basics of investing the Company’s assets,
5. Determining the company's assets that meet the accrued insuring obligations.
6. The accounting policies to be adopted by the company and the requirired forms to prepare reports, financial statements and presentation thereof.
7. The principles of organizing accounting books and records of each of the companies, Agents, and Brokers and determining the data to be contained in these books and records.
8. The records which the company shall be obliged to organize and maintain as well as the data and documents shall be made available to the Authority.
9. The rules of professional practice and code of ethics
10. Anti-Money laundering and combating terrorism financing in the insurance activities in collaboration with the pertinent bodies.
11. The rules governing ownership in insurance companies’ capitals, pursuant to the provisions of the Federal Law pertinent to Commercial Companies.

Article (25):

1. The company may not combine both Persons and Funds Accumulation Insurance Operations and Property and Liability Insurance Operations.

2. Exception to what is stipulated in paragraph (1) of the article herein, an existing company licensed to practice the two types of insurance prior to the promulgation of this Law may combine Persons and Funds Accumulation Insurance Operations and Property and Liability Insurance Operations, provided that it will comply to do the following:

(a) Complete separation between Persons and Funds Accumulation Insurance Operations and Property and Liability Insurance Operations in terms of technical, financial, technological, administrative and legal procedures and the relevant requirements in terms of technical, administrative and financial staff, with the exception of the Director-General of the company.

(b) Preparation of all reports and financial statements required by the Law herein, the instructions and decisions of the Board on a consolidated total basis, and on the basis of the separation between Persons and Funds Accumulation Insurance Operations and Property and Liability Insurance Operations.

Article (28):

1. Insurance policies concluded in the State shall be written in Arabic and a faithful translation into another language may be attached therewith, and in case of differences over the interpretation of the policy the Arabic text shall prevail.
2. The policy's articles exempting the company from the liability shall be written in bold letters and different colour and must be acknowledged by the insured.
3. Insurance policies may be issued electronically, in accordance with the circumstances and conditions established by a decision by the Board.
4. Exception to paragraph (1) of the article herein, the Director-General may exclude certain insurance policies from the condition of writing them in the Arabic language.

Article (35):

The company licensed to carry out insurance operations after the implementation of the provisions of the Law herein shall appoint or approve a registered actuary within a month as from date of granting the license thereto, provided reporting the same to the Director General within a month as from date of appointing or approving the actuary. The companies licensed prior to implementing the provisions of the law herein shall adjust their situation in accordance with the provisions of the Article herein within three months as from date of implementing the provisions of the law herein.

Article (41):

The Authority shall conduct periodical inspection on the insurance and re¬insurance companies to ensure the soundness of their financial situations, and their compliance with the provisions of the law and the technical basis of carrying out the insurance and re-insurance operations. Should the Director General come to know through such inspection or vide sufficient information that one of the following incidents took place, then he shall ensure soundness of such information:

1. (a) The company did not fulfil its obligations, or it's likely to fall short in doing so or the company is unable to continue its operations.
2. (b) The company violated the provisions of the law herein, bylaws, regulations, instructions or the decisions issued pursuant thereto.
3. (c) The company's procedures needed to reinsure the risks accepted by it are inadequate or the company didn't make these procedures, with the exception of the insurance-related professions.
4. (d) The company has lost one of the required terms and conditions for licensing or registration to carry out the insurance activity.
5. (e) The company's total losses exceeded (50%) of its paid-up capital.
6. (f) The company ceased its operations for more than one year without justifiable cause or legitimate reason.

2. Should the Director General became evident that the said information is correct he shall ask the company to take certain procedures to rectify its position within the period he shall determine, and in case the company failed to do so, the Director General shall refer the matter to the Board to take the necessary actions to rectify these situations; including:
(a) Request from the company or the main office of the foreign insurance company, as appropriate, to take the necessary action to correct the administrative situations, including the disqualification of the Director-General, the Authorized Manager or any senior official.

(b) Disqualification of the Chairman of the Board of Directors or any member of the Board that proves accountability for the current status of the Company.

(c) Dissolving the Company's Board of Directors and appointing a provisional neutral administrative committee of experienced individuals to take its place and appointing a chairman for the committee and a deputy thereof. The functions and competencies of the committee shall be determined for a period not exceeding six months, extendable for a period not exceeding one year in cases where this is required. The company shall be liable for the fees of the committee as determined by the Authority and upon accomplishment of the committee's mission a new Board of Directors shall be elected in accordance with the provisions of the Commercial Companies Law.

(d) Taking the necessary action to merge the company into another according to the provisions of the Commercial Companies Law.
(e) Ceasing or cancelling the company's license.
(f) Restructuring the company.
(g) Preventing the company from concluding any more insurance contracts or preventing it from practicing a particular type or types of insurance.
(h) Setting upper limit for the premiums total amounts received by the company for issuing insurance policies.
(i) Retaining assets in the State equal in value to the company's total net obligations accrued from its operations in the State or a certain percentage of their value as determined by the Board based on the recommendation of the Director General.
(j) Restricting the company's involvement in any of its investments activities associated with the solvency margin or compeling it to liquidate its investments in any of these activities to serve this purpose, unless such action would cause damage to the company as decided by the expert specialized in this field.
(k) Appointing an independent observer member from outside the Authority to attend meetings of the Board of Directors of the company and participate in the discussions without having a vote during taking the decision and the Board shall determine his competencies and fees.
(l) Liquidating the company.

3. The provisions stipulated in paragraph (1) and (2) of the article herein shall apply to Insurance Related Professions to the extent appropriate to the nature of these professions.

Article (95):

Exception to the legislation in force in the State, the due debts and obligations of the company subject to liquidation shall be paid according to the following order:
1. The due entitlements of the staff and employees for the last four months.
2. The liquidator’s fees, costs, expenditures and the loans he obtained.
3. The rights of insured and beneficiaries of insurance policies. The liquidator shall be obliged to allot the company's assets that represent the technical provisions required to be retained in accordance with the provisions of the law herein to pay these liabilities and any amounts acquired by the company according to any arrangements of reinsurance shall be deemed part of the technical provisions.
4. The rights of the other debtors by order of preferences according to the laws in force.
5. The rights of the shareholders.

Article (99):

1. The insurance companies, reinsurance companies and insurance-related professions subject to the provisions of the law herein shall establish a professional association to be called "Emirates Insurance Association" that shall have a legal personality and all the insurance companies operating in the State shall be members of the Association. The Association shall form independent committees for the different insurance activities carried out by the members.

2. The Association shall prepare Articles of Association issued by the Chairman after the Board’s approval under which it shall determine the Association's functions, duties, its relation with the Authority, formation of its committees for different insurance activities, provisions and procedures of its general assembly, formation of its Board of Directors, meetings of each one of them, affiliation fees, annual subscription fees, code of conduct, disciplinary procedures against the members and other related affairs.

Article (110)

1. The insurance company shall manage insurance claims in accordance with the legislation in force and the provisions of the insurance policies, pursuant to the following procedures:

(a) Issuing a decision concerning any insurance claim in accordance with the instructions of professionals rules and code of conduct and ethics.

(b) In case any insurance claim is fully or partially denied, the Company must clarify the reasons for its decision in writing.

(c) In case of a dispute in relation to a claim, the concerned person may submit a written complaint to the Authority, which in turn may request clarification from the Company.

(d) In case the complainant has objection on the clarifications provided by the company, he may request that the dispute be referred to the Committee established pursuant to article No. (110).

2. One or more committees that will be concerned with resolving the disputes arising out of insurance contracts, operations and services shall be formed. The committee (s) shall have the competency to request any official papers or documents and to counsel experts, as well as hearing of witnesses and any other alternatives that need to be used to resolve the disputes before them.

3. Cases resulting from the disputes arising out of insurance contracts, operations and services shall not be accepted, if such disputes are not brought before the committees established in accordance with the provisions of paragraph No. (2) of the article herein.

4.The concerned party shall have the right to appeal against the decisions of the committees before the competent first instance court within thirty days of the day following their notification of the decision, otherwise the decision shall be deemed final and enforceable.

5. The Board shall issue the necessary decisions concerning the composition of the committees established in accordance with the provisions of paragraph No. (2) of the article herein, their competencies, powers, their work system, fees of its members and hired experts, types and classes of insurance for which insurance disputes are resolved before these committees, and other related matters.

Article (2)

New articles shall be added to the referred herein Federal Law No. (6) of 2007, with the numbers: (23) bis (1), (23) bis (2), (41) bis (1), (41) bis (2) and (41) bis (3), and shall read as follows:

Article (23) bis (1)

The Authority may compel those practicing insurance activities of certain types and classes, but not others, and determine the terms, conditions and applicable tariff rates, as well as regulating the rights and obligations of the related parties.

Article (23) bis (2):

The Authority may establish funds that have independent legal personality for the purpose of protecting and compensating persons. The Board shall issue a decision to determine how to establish these funds, their objectives, funding, as well as risks covered under these funds, and benefits in case those risks have occurred.

Article (41) bis (1):

1. Subject to the provisions of the Law concerning Offences and Administrative Sanctions in the Federal Government, the Authority has the power to impose administrative fines on insurance companies, reinsurance companies and insurance-related professions.

2. The Cabinet shall issue a decision to determine the offences for which the fines referred to in paragraph (1) of the article herein shall be imposed.

Article (41) bis (2):

1. The Director-General shall designate any expert, consultant, actuary or auditor for the purpose of conducting an inspection or audit.

2. Inspectors and auditors appointed by the Director General shall be given all necessary authorities to enable them to carry out their duties, including:

(a) Accessing records, registers, statements and internal audit reports. As well as collecting information and requesting necessary clarifications from the insurance company, reinsurance company, insurance-related profession and the members in respect of the insurance operations they carry out. In addition to obtaining prints or copies of records, registers and statements.

(b) Collecting the necessary information and clarifications from the members of the group of insurance company or reinsurance company in relation to all records, operations and activities relating to the insurance company.

(c) Collecting the necessary information and clarifications from any third party that has a relation with the insurance company, reinsurance company or the insurance-related profession concerning the subject matter of auditing.

Article (41) bis (3):

Any insurance company, reinsurance company or insurance-related profession, or any of their managers or employees shall not:

1. Prevent, intercept or obstruct any person appointed by the Director General to carry out inspections or audits pursuant to the law herein.

2. Conceal any data, registers or books requested by the Director General or the person appointed by him to perform the inspection or auditing duties.

3. Issue any misleading statements or give any inaccurate data, registers or books.

Article (3)

The current Articles of Association of the Emirates Insurance Association stipulated in article (99) of the Federal Law No. (6) of 2007, referred to herein shall continue to remain in force without prejudice to the provisions of the law herein until the new Articles of Association is issued by the Authority, within six months from the effective date of this law.

Article (4)

Paragraph (3) of article (24) and the articles from (100) to (108) of Federal Law No. (6) of 2007, referred to herein shall be cancelled.

Article (5)

Any provision in conflict or contradiction with the provisions of the Law herein shall be cancelled.

Article (6)

This Law shall be published in the Official Gazette and shall take effect as of the following day of its publication.

We, Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates,

Having perused the constitution;

- Federal Law No (1) of 1972, Regarding Jurisdictions of Ministries and Powers of Ministers, and amendments thereto;
- Federal Law No. (6) of 2007 On Establishment of the Insurance Authority & Organization of Insurance Operations and the amendments thereto;
- Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organization of Financial Institutions and Activities and the amendments thereto;
- Decretal Federal Law No. (26) of 2018 On Public Finance;
- And based on the approval of the Cabinet,

Promulgated the following Decretal Law:

We, Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates,

Having perused the constitution;

Federal Law No (1) of 1972, Regarding Jurisdictions of Ministries and Powers of Ministers, and amendments thereto;

Decretal Federal Law No (14) of 2018, Regarding the Central Bank & Organization of Financial Institutions and Activities, and amendments thereto;

And based on what was presented by the Minister of Finance, the approval of the Cabinet.

Promulgated the following Decretal Law:

Article (1)

The text of Articles (12) of the aforementioned Decretal Federal Law No (14) of 2018 shall be replaced by the following texts:

A member of the Board of Directors shall satisfy the following conditions:

1. 1) Be of UAE nationality.
2. 2) Have experience in economic, financial or banking affairs.
3. 3) Not have been declared bankrupt or failed to repay his debts.
4. 4) Not have been convicted, of a felony or a misdemeanor involving moral turpitude or dishonesty, unless rehabilitated.
5. 5) Not an active minister, excluding the Chairman of the Board of Directors.
6. 6) Not a member of the Federal National Council.
7. 7) Not holding any position, a job or board of directors’ membership of any institution licensed by any of the Regulatory Authorities in the State or by any of the regulatory authorities in the Financial Free Zones.
8. 8) Not a controller or auditor of accounts of a Licensed Financial Institution, nor owner, agent, or partner in any accounts audit firm.

Article (2)

Any provision that contradicts or conflicts with the provisions of this law shall be repealed.

Article (3)

This Law shall be published in the Official Gazette, and shall come into force from the date of its issuance.

We, Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates,

Having perused the constitution;
Federal Law No (1) of 1972, Regarding Jurisdictions of Ministries and Powers of Ministers, and amendments thereto;
Federal Law No (7) of 1999, Regarding Pension Law and Social Insurance, and amendments thereto;
Federal Law No (6) of 2007, Regarding Establishment of The Insurance Authority & Organization of its Business, and amendments thereto;
Federal Decree Law No (11) of 2008, Regarding Human Resources on Federal Government, and amendments thereto;
Decretal Federal Law No (14) of 2018, Regarding the Central Bank & Organization of Financial Institutions and Activities, and amendments thereto;
Federal Decree Law No (26) of 2019, Regarding Public Finance;
And based on the approval of the Cabinet.

Promulgated the following Decretal Law:

Article (1)

The definition of “The Regulatory Authorities in the State” mentioned in Article (1) of the aforementioned Decretal Federal Law No (14) of 2018 shall be replaced by the following definition:

The Regulatory Authorities in the State: “The Central Bank, the Securities & Commodities Authority”.

Article (2)

The text of Articles (4), (15), (23), (74), and (136) of the aforementioned Decretal Federal Law No (14) of 2018 shall be replaced by the following texts:

Article (4):

The Central Bank aims at achieving the following objectives:

1. 1) Maintain stability of the national Currency within the framework of the monetary system.
2. 2) Contribute to the promotion and protection of the stability of the financial system in the State.
3. 3) Ensure prudent management of the Central Bank’s Foreign Reserves.
4. 4) Provide appropriate environment to develop and enhance the role of the insurance industry in insuring people, property and responsibilities against risks to protect the national economy, encourage fair and effective competition, provide the best insurance services at competitive prices and coverage, and localize jobs in the insurance market.

For the purpose of achieving its objectives, the Central Bank shall undertake the following functions and jurisdictions:

1. a. Draw up and implement monetary policy while considering the State’s general strategy.
2. b. Exercise the privilege of Currency issuance.
3. c. Organize Licensed Financial Activities, establish the foundations for carrying them on, and determine the standards required for developing and promoting prudential practices in accordance with the provisions of this decretal law and international standards.
4. d. Set up appropriate regulations and standards for protection of customers of Licensed Financial institutions.
5. e. Monitor the credit condition in the State, in order to contribute to the achievement of balanced growth in the national economy.
6. f. Manage foreign reserves to maintain, at all times, sufficient foreign currency assets to cover the Monetary Base as per the provisions of this decretal law.
7. g. Regulate, develop, oversee and maintain soundness of the Financial Infrastructure Systems in the State, including electronic payment systems, digital currency, and Stored Value Facilities.
8. h. Regulate, develop and oversee the insurance sector and business, and propose and implement regulating legislation in this regard
9. i. Receive requests for establishing and opening branches and representative offices for insurance and reinsurance companies, insurance agents and the professions associated therewith, and issuing the necessary licenses for them in accordance with the regulating legislation in this regard.
10. j. Protect the rights of the insured and the beneficiaries of the insurance business and monitor the financial solvency of insurance companies to provide adequate insurance coverage to protect these rights.
11. k. Work to raise the performance and efficiency of insurance companies and oblige them to the rules and ethics of the profession to increase their ability to provide better services to the beneficiaries of insurance, and to achieve positive competition among them.

Article (15):

The Board of Directors shall, within the limitations imposed by the provisions of this decretal law, exercise all powers required for achieving the objectives for which the Central Bank has been established. The Board of Directors shall, in particular, exercise the following:

1. 1) Issue regulations, rules, standards, instructions and business controls to perform its functions and jurisdictions, and take all measures and actions necessary to enforce the provisions of this decretal law.
2. 2) Establish and oversee implementation of polices for deployment and management of the Central Bank’s Own Funds and assets.
3. 3) Decide on matters relating to issuance of the Currency and its withdrawal from circulation.
4. 4) Issue regulations relating to organization of Licensed Financial Activities and decide on related matters, including regulations and procedures relating to supervision and oversight thereof, and determine conditions and rules for granting licenses to Licensed Financial Institutions to carry on Licensed Financial Activities and authorizations to undertake Designated Functions.
5. 5) Issue regulations, rules, standards, instructions, and work controls for insurance, reinsurance, insurance agents, and the professions and activities associated therewith.
6. 6)Establish regulations and standards for protection of customers of Licensed Financial Institutions.
7. 7) Issue regulations, controls, and procedures for encountering money laundering and combating terrorism financing and unlawful organizations.
8. 8) Take necessary actions, procedures and impose administrative penalties against any Person violating the provisions of this decretal law, and regulations issued in implementation thereof.
9. 9) Approve rules and regulations for maintaining integrity and efficiency of Financial Infrastructure Systems licensed, established, developed, or operated by the Central Bank.
10. 10) Approve risk management and compliance policies at the Central Bank.
11. 11) Approve Central Bank’s bylaws, issue the organizational structure and the administrative, financial and technical regulations, and determine powers and competencies, within the limitations of the provisions of this decretal law.
12. 12) Approve human resources policies at the Central Bank.
13. 13) Approve rules for the Central Bank institutional governance, including a set of rules and regulations aimed at achieving performance quality and excellence, in line with the Government’s strategic plans and objectives.
14. 14) Decide on loans and advances granted to the Government, in accordance with the provisions of this decretal law.
15. 15) Approve settlements and reconciliations relating to Central Bank’s businesses.
16. 16) Approve the Central Bank’s annual budget and any variations thereof during the year.
17. 17) Approve the Central Bank’s annual final accounts and the amount of net annual profits.
18. 18) Regulate the mechanism of objections related to the insurance activity in accordance with the regulating legislations in this regard.
19. 19) Deal with all other matters deemed within its powers, and are conducive to achievement of the objectives of the Central Bank and the discharge of its functions, in accordance with the provisions of this decretal law.

Article (23):

Without prejudice to the powers and competencies of the Chairman of the Board of Directors, the Governor shall be the legal representative of the Central Bank, and shall sign, on its behalf, all instruments, contracts and documents.

Article (74):

1. 1) Banks shall take the form of public joint- stock companies, with incorporating law or decree so permits. Branches of foreign banks operating in the State, and specialized banks with low risks that are determined according to the conditions and rules set by the Board of Directors shall be exempt from this requirement.
2. 2) Other Financial Institutions may take the form of joint- stock companies or limited liability companies, in accordance with the rules and conditions issued by the Board of Directors.
3. 3) Exchange Houses and monetary intermediaries may be a sole proprietorship, or take any other legal form in accordance with the rules and conditions issued by the Board of Directors.

Article (136):

1. 1) Under the provisions of this Decretal Law, a committee within the Central Bank, named “Grievances & Appeals Committee” shall be established. The Cabinet shall issue a resolution, based on a proposal by the Board of Directors, establishing the committee’s formation, duration, system of work, and all procedures and rules related to adjudication of grievances and appeals, including fees due for consideration.
2. 2) In the formation of the committee, the presence of one or more judges and two experts with competence in financial and banking matters should be taken into consideration.
3. 3) A nominated committee member may not be a member of the Board of Directors, nor holder of any position at the Central Bank or at any of the Licensed Financial Institution.
4. 4) The chairman of the committee or any of its members shall have no interest with any party to the dispute, otherwise he shall be required to disclose such interest, and in such case another member shall be temporarily appointed to hear the presented dispute.
5. 5) The Committee shall have the jurisdiction to decide on grievances and appeals against any decisions related to financial and banking activities issued by the Central Bank related to licensing, authorization of individuals, and licensing and designation of Financial Infrastructure Systems, and may, for such purposes take all or some of the following actions:
   1. a. Require any Person to appear in front of the Committee to present any evidence, testimony, information or statement.
   2. b. Hear the testimony of any witnesses under oath.
   3. c. Commission any experts it deems appropriate to provide opinion on any matter relating to the dispute.
   4. d. Take whichever actions and procedures it deems appropriate for discharge of its mandate.
6. 6) If the Committee rejected the grievances or appeal on the grounds that it was filed by a party of no capacity or interest, the Committee may impose on the applicant a fine, not exceeding two hundred thousand (200,000) Dirhams.
7. 7) The Committee may suspend the appealed decision, if necessary, until it reached a decision on the dispute.
8. 8) A decision issued by the Committee on the grievance or appeal shall be final and shall only be challenged at the Higher Federal Court within a period of twenty (20) work days from date of its notification. The Higher Federal Court may, upon request of the appellant, suspend the decision issued by the Committee until it reached its decision on the subject, if it considered that the appeal is based on genuine grounds and that implementation of the Committee’s decision shall have irreversible consequences.

Article (3)

The Central Bank and its Board of Directors replace the Insurance Authority established by the aforementioned Federal Law No. (6) of 2007 in all competencies and legislations related thereto, and all rights, obligations, privileges, funds, material and moral assets, guarantees and undertakings belonging to the Authority, including the rights and obligations contained in any contracts, agreements or Memoranda of understanding concluded by the Authority. Assets, allocations, reserves, and revenues of the Insurance Authority from fees, fines and any other returns that it collects from exercising its functions, shall devolve to the Central Bank. The Governor replaces the Director General of the Authority in the tasks and powers established for him in the laws and legislations referred to, as of the effective date of this Decretal Law.

Article (4)

The Board of Directors of the Central Bank shall issue the necessary decisions to implement the provisions of this Decretal Law, including the decisions necessary to transfer and settle the status of the staff of the Insurance Authority which has transferred all its competencies to the Central Bank in accordance with the provisions of this Decretal Law, without prejudice to their gross salaries, job grades, and acquired rights.

Article (5)

1. 1. The text of Article (119) of Federal Law No. (6) of 2007 regarding the establishment of the Insurance Authority and the organization of its business shall be canceled, and every provision that contradicts or conflicts with the provisions of this Decretal Law shall be canceled as well.
2.  
3. 2. Rules, decisions, circulars and regulations issued in accordance with the provisions of Federal Law No. (6) of 2007 referred to shall continue to apply, in a manner that does not contradict the provisions of this Decretal Law, and until the issuance of the rules, decisions, circulars and regulations that replace them in accordance with the provisions of this Decretal law.

Article (6)

This decretal law shall be published in the Official Gazette, and shall come into force on January 2^nd, 2021.

We, Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates,

Having perused the constitution;

Federal Law No (1) of 1972, regarding Jurisdictions of Ministries and Powers of Ministers, and amendments thereto;

Decretal Federal Law No (14) of 2018, regarding the Central Bank & Organization of Financial Institutions and Activities, and amendments thereto;

And based on what was presented by the Minister of Finance, the approval of the Cabinet, the Federal National Council, and ratified by the Federal Supreme Council;

Promulgated the following Law:

Article (1)

The text of Articles (10), (11), and (22) of the aforementioned Decretal Federal Law No (14) of 2018 shall be replaced by the following texts:

Article (10):
The Central Bank shall be managed by a Board of Directors of seven (7) members, including the Chairman and the Governor.

Article (11):
1) Members of the Board of Directors shall be appointed by a Federal Decree based on recommendation of the Cabinet, and shall serve for a four (4) year term renewable to similar periods. The Decree designates from among the members of the board of directors one or more deputy chairman.
2) The Chairman, his Deputies and the Governor, shall each have the rank of Minister.
3) The Chairman issues a decision defining the powers of his Deputies.
4) Subject to item three (3) of this article, Should the Chairman be absent or his post became vacant, the Deputy Chairman shall replace him; and should both the Chairman and his Deputies be absent or their posts became vacant, the Governor shall replace them both.

Article (22):
1) Five (5) members of the Board of Directors including the Chairman of the Board of Directors, one of his Deputies, or the Governor, shall constitute quorum for any meeting.
2) Decisions of the Board of Directors shall be adopted by a majority vote of the members present. In case of a tie, the Chairman of the session shall have the casting vote.

Article (2)

Any provision that contradicts or conflicts with the provisions of this law shall be repealed.

Article (3)

This Law shall be published in the Official Gazette, and shall come into force from the date of its issuance.

We, Khalifa Bin Zayed Al Nahyan, President of the United Arab Emirates,

Having perused the constitution;

Federal Law No (1) of 1972, regarding Jurisdictions of Ministries and Powers of Ministers, and amendments thereto;

Decretal Federal Law No (14) of 2018, regarding the Central Bank & Organization of Financial Institutions and Activities, and amendments thereto;

And based on what was presented by the Minister of Finance, the approval of the Cabinet.

Promulgated the following Decretal Law:
 

Article (1)

The definition of (Standing Facilities) and (Eligible Securities) included in Article (1) of the aforementioned Decretal Federal Law No (14) of 2018 shall be replaced by the following two definitions:

Standing Facilities: Monetary Policy tools made available to Licensed Financial Institution, to enable management of its liquidity in accordance with the controls and instructions issued by the Central Bank, in accordance with the provisions of this Decretal Law.

Eligible Securities: Securities approved by the Central Bank, which Licensed Financial Institution may present as collateral for drawing from the Central Bank funds in accordance with the controls and instructions issued by the Central Bank, in accordance with the provisions of this Decretal Law.
 

Article (2)

The texts of Articles (15), (17), (24), (44), (50), (57), (58), (121), (128), (136) and (137) of the aforementioned Decretal Federal Law No (14) of 2018 shall be replaced by the following texts:

Article (15)

Powers & Functions of the Board of Directors

The Board of Directors shall, within the limitations imposed by the provisions of this decretal law, exercise all powers required for achieving the objectives for which the Central Bank has been established.

The Board of Directors shall, in particular, exercise the following:

1. 1) Approve regulations, rules, standards, instructions and business controls to perform its functions and jurisdictions, and take all measures and actions necessary to enforce the provisions of this decretal law.
2. 2) Establish and oversee implementation of polices for deployment and management of the Central Bank’s Own Funds and assets.
3. 3) Decide on matters relating to issuance of the Currency and its withdrawal from circulation.
4. 4) Issue regulations relating to organization of Licensed Financial Activities and decide on related matters, including regulations and procedures relating to supervision and oversight thereof, and determine conditions and rules for granting licenses to Licensed Financial Institutions to carry on Licensed Financial Activities and authorizations to undertake Designated Functions.
5. 5) Approve regulations, rules, standards, instructions and business controls for insurance and reinsurance companies, insurance agents and the professions associated therewith.
6. 6) Establish policies, and approve regulations relating to prudential supervision, and the standards and guidelines relating to Licensed Financial Activities.
7. 7) Establish regulations and standards for protection of customers of Licensed Financial Institutions.
8. 8)Approve regulations, controls, and procedures for encountering money laundering and combating terrorism financing and unlawful organizations.
9. 9) Take necessary actions, procedures and impose administrative penalties against any Person violating the provisions of this decretal law, and regulations issued in implementation thereof.
10. 10) Approve rules and regulations for maintaining integrity and efficiency of Financial Infrastructure Systems licensed, established, developed, or operated by the Central Bank.
11. 11) Approve risk management and compliance policies at the Central Bank.
12. 12) Approve Central Bank’s bylaws, issue the organizational structure and the administrative, financial and technical regulations, and determine powers and competencies, within the limitations of the provisions of this decretal law.
13. 13) Approve human resources policies at the Central Bank.
14. 14) Approve rules for the Central Bank institutional governance, including a set of rules and regulations aimed at achieving performance quality and excellence, in line with the Government’s strategic plans and objectives.
15. 15) Decide on loans and advances granted to the Government, in accordance with the provisions of this decretal law.
16. 16) Approve settlements and reconciliations relating to Central Bank’s businesses.
17. 17) Approve the Central Bank’s annual budget and any variations thereof during the year.
18. 18) Approve the Central Bank’s annual final accounts and the amount of net annual profits.
19. 19) Regulate the mechanism of objections related to the insurance activity.
20. 20) Deal with all other matters deemed within its powers, and are conducive to achievement of the objectives of the Central Bank and the discharge of its functions, in accordance with the provisions of this decretal law.

Article (17)

Higher Shari`ah Authority

1. 1) Pursuant to this decretal law, an authority named “Higher Shari`ah Authority” attached to the Central Bank shall be established with a membership not less than five (5) members and not exceeding seven (7) members, of sufficient knowledge and experience in the jurisprudence of Islamic financial transactions.
2. 2) The Board of Directors shall approve the authority’s work system, its functions and competencies, and the mechanism for financing the costs of its establishment and continuity of work.
3. 3) The Governor shall issue a decision to form the authority and appoint its members.
4. 4) Licensed Financial Institutions, which carry on the whole or part of their businesses and activities in compliance with Islamic Shari`ah shall bear all expenses of the Authority referred to in item (1) of this article, including remunerations, allowances and expenses of its members according to the decision issued by the Board of Directors.
5. 5) The Higher Shari`ah Authority shall determine the rules, standards, and general principles applicable to Shari`ah-compliant businesses and Licensed Financial Activities, and shall undertake supervision and oversight of the internal Shari`ah supervisory committees of Licensed Financial Institutions, referred to in Article (79) of this decretal law.
6. 6) The Higher Shari`ah Authority shall approve Islamic monetary and financial tools issued and developed by the Central Bank to manage monetary policy operations in the State, and provide its opinion regarding the specific regulatory rules and instructions relating to the operations and activities of Licensed Financial Institutions which conduct the whole or part of their business and activities in accordance with the provisions of Islamic Shari`ah.
7. 7) The Fatwas and opinions of the Higher Shari`ah Authority shall be binding on the internal Shari`ah supervisory committees, referred to in Article (79) of this decretal law, as well as on Licensed Financial Institutions which conduct the whole or part of their business and activities in accordance with the provisions of Islamic Shari`ah.
8. 8) The Higher Shari`ah Authority may seek assistance of a specialized party, if necessary, to conduct Shari`ah external audit of the business of any Licensed Financial Institution, which carry on the whole or part of their businesses and activities in accordance with the provisions of Islamic Shari`ah, and the conditions and procedures determined by the Authority, at the expense of the concerned institution.

Article (24)

Responsibilities of the Governor

Without prejudice to any competencies established for the Board of Directors or the Chairman of the Board of Directors, the Governor shall conduct and manage all the affairs of the Central Bank, and issue regulations, systems and policies approved by the Board of Directors. The Governor shall be responsible for the implementation of this decretal law, the regulations of the Central Bank and decisions of the Board of Directors. He may delegate some of his powers and competencies to any of his deputies, assistants, or some senior staff of the Central Bank.

Article (44)

Protection of Licensed Financial Institutions

1) The Central Bank shall take all measures it deems appropriate to maintain conduct of operations of Licensed Financial Institutions, within the frameworks and limits set by the Board of Directors.

For this purpose, the Central Bank shall:

1. A) Request to hold a meeting of the general assembly of the licensed financial institution to discuss any issue the Central Bank deems important.
2. B) Request to include any item that the Central Bank deems necessary into the agenda of the general assembly meeting of the licensed financial institution.
3. C) Stopping the implementation of any decision issued by the general assembly of the licensed financial institution in the event that it violates the laws or regulations in force.

2) The Central Bank, according to its own discretion, in cases of necessity during which the deposit-taking licensed financial institution is exposed to liquidity pressures or is subject to crisis management procedures, may provide loans to that establishment, in order to contribute to strengthening and protecting the stability of the financial system and protecting the monetary system in the state.

Article (50)

Privilege & Guarantee of Own Rights

1. 1) Debts of the Central Bank shall enjoy the privilege Government debts have, over property of its debtors. The Central Bank’s debts shall be collected in the same manner and by the same means prescribed for collection of the Government debts and property.
2. 2) Save for the Reserve Requirements referred to in Article (32) hereof, the Central Bank shall have privilege over the property of Licensed Financial Institutions for payment of all its claims and dues of cash balances or assets which constitute guarantees for these claims and dues, upon maturity thereof.
3. 3) The Central Bank may purchase, by agreement or by forced sale, or acquire immovable property in settlement of its debts. Such property must be sold within the shortest possible period of time, unless the Central Bank decided to use it for the conduct of its business, in accordance with this decretal law.
4. 4) The Central Bank must obtain sufficient guarantees to ensure the fulfillment of its rights, including mortgage, pledge or assignment.
5. 5) In case its secured rights were not paid upon maturity thereof, the Central Bank may, after ten (10) days from the date its debtor was duly notified, proceed with sale of any pledged assets, without prejudice to Central Bank’s right to initiate other legal proceedings against the debtor, until its secured rights were fully paid.
6. 6) Sale of pledged property pursuant to provisions of item (5) of this article shall be carried out by the competent court upon request of the Central Bank.
7. 7) The Central Bank shall collect its dues from proceeds of the sale carried out pursuant to provisions of item (6) of this article. Should such proceeds exceed the Central Bank’s dues; the surplus shall be deposited with the Central Bank, at the debtor’s disposal, without paying any interest.

Article (57)

Currency Specifications, Features & Denominations

1. 1) Currency notes issued by the Central Bank shall be of such denominations, designs, and specifications, and bear such features as shall be decided by the Board of Directors. Currency notes shall bear the signature of the Chairman of the Board of Directors.
2. 2) The Board of Directors shall determine the weight, composition, mix ratios, allowed variation, and all other specifications of Currency coins as well as the quantities of each denomination to be minted.
3. 3) The Central Bank shall make necessary arrangements for printing of Currency notes referred to in item (1) of this article, and minting of Currency coins referred to in item (2) of this article, along with all matters relating to such printing, minting and safekeeping of such Currency notes and coins and the relative plates and dies.
4. 4) The Central Bank shall publish decisions to issue Currency by the specifications, designs and all other features, in the Official Gazette.

Article (58)

Gold & Silver Coins and Commemorative Coins

1. 1)The Board of Directors shall determine conditions for sale and purchase of gold and silver coins at the Central Bank.
2. 2)The Central Bank may issue commemorative Currency notes or coins for any wishing party, in accordance with the rules and conditions set by the Board of Directors.
3. 3)The Board of Directors shall determine the denominations, fineness, and weights, measurements, allowed variation, and all other specifications of gold and silver coins, as well as the quantities of each denomination to be minted.
4. 4)The Central Bank shall make necessary arrangements for minting of gold and silver coins referred to in this article, along with all matters relating to such minting and safekeeping of such coins and the relative plates and dies.

Article (121)

Protection of Customers of Licensed Financial Institutions

1. 1)The Central Bank shall establish regulations relating to protection of customers of Licensed Financial Institutions, in line with the nature of activities the latter carry on and the services and products they provide. The Central Bank may establish a unit that enjoys independent legal personality, and is in charge of receiving and handling complaints of clients of licensed financial institutions. The Unit’s system of work, its powers, regulations and regulations related to human resources and its financial affairs shall be issued by a decision of the Board of Directors.
2. 2)The Central Bank and Licensed Financial Institutions shall work together to raise public awareness of the types of banking services and financial products, and their inherent risks, through all means of communication and media, in accordance with the rules set by the Central Bank in this regard.
3. 3)Licensed Financial Institutions are not permitted to charge interest on accrued interest charged on any credit or funding facilities granted to customers.

Article (128)

Suspension or Revocation of a License

1. 1)The Central Bank may suspend or revoke a license granted to a Financial Infrastructure System, in accordance with the provisions of article nos. (124) and (125) of this decretal law, via an official notice to the operator or the Settlement Institution of the concerned system and take necessary actions in this respect, as the case may be, if it considered that the system is no longer capable of conducting its operations. The Central Bank shall allow such period as specified in the notice referred to in this item, which shall not be less than twenty (20) working days from date of notification, within which the concerned system operator or its Settlement Institution may object to the Central Bank’s decision to suspend or revoke the license and provide their justifications for such objection, in accordance with the provisions of Part Five of this decretal law.
2. 2)The Central Bank, if it considers that any Designated System licensed by any of the Regulatory Authorities in the State or in other jurisdictions is no longer capable of conducting its operations, may request the concerned regulatory authority, via an official notice, to suspend or revoke the license of this system and take necessary actions in this respect, as the case may be. The concerned regulatory authority shall have the right to approve or reject the request of the Central Bank. In case of approval, the procedures and controls in force by the concerned authority shall be applicable.
3. 3)In all cases, the suspension or revocation of a license granted to a Designated System in accordance with the provisions of this article, shall not affect any transaction cleared or settled in the concerned system prior to the effective date of suspension or revocation.

Article (136)

Grievances & Appeals Committee

1. 1) Under the provisions of this Decretal Law, an independent committee within the Central Bank, named “Grievances & Appeals Committee” shall be established. The Cabinet shall issue a resolution, based on a proposal by the Board of Directors, establishing the committee’s formation, duration, system of work, and all procedures and rules related to adjudication of grievances and appeals, including fees due for consideration.
2. 2) In the formation of the committee, the presence of one or more judges and two experts with competence in financial and banking matters should be taken into consideration.
3. 3) A nominated committee member may not be a member of the Board of Directors, nor holder of any position at the Central Bank or at any of the Licensed Financial Institution.
4. 4) The chairman of the committee or any of its members shall have no interest with any party to the dispute, otherwise he shall be required to disclose such interest, and in such case another member shall be temporarily appointed to hear the presented dispute.
5. 5) With the exception of the regulations, directives, instructions, policies, and regulatory and supervisory decisions of a general nature, the Committee, shall solely and exclusively have jurisdiction to decide on grievances and appeals against any decisions by the Central Bank in accordance to the provision of this Decretal Law, and may, for such purposes take all or some of the following actions:
   1. a. Require any Person to appear in front of the Committee to present any evidence, testimony, information or statement.
   2. b. Hear the testimony of any witnesses under oath.
   3. c.Commission any experts it deems appropriate to provide opinion on any matter relating to the dispute.
   4. d. Take whichever actions and procedures it deems appropriate for discharge of its mandate.
6. 6) Appeals against decisions that fall within the competence of the committee in accordance with the provisions of this article are not accepted before the grievance or appeal thereon before the committee, and the grievance is decided according to the circumstances.
7. 7) If the Committee decided to reject or not accept the grievance of appeal, the Committee may impose on the applicant a fine, not exceeding two hundred thousand (200,000) Dirhams.
8. 8) The Committee may suspend the appealed decision, if necessary, until it reached a decision on the dispute.
9. 9) The grievance or appeal against any decision before the committee shall not be accepted after the lapse of (15) fifteen working days from the date on which the concerned person is notified of it, or if his knowledge of it is proven with certainty.
10. 10) A decision issued by the Committee on the grievance or appeal shall be final and shall only be challenged at the Higher Federal Court within a period of twenty (20) work days from date of its notification. The Higher Federal Court may, upon request of the appellant, suspend the decision issued by the Committee until it reached its decision on the subject, if it considered that the appeal is based on genuine grounds and that implementation of the Committee’s decision shall have irreversible consequences.

PART VI

– ADMINISTRATIVE & FINANCIAL SANCTIONS AND PENALTIES –

Chapter One: Administrative & Financial Sanctions

Article (137)

1. 1) Without prejudice to other sanctions stated in any other laws in the State, and upon establishment of a violation by any Licensed Financial Institution or by any Authorized Individual of any of the provisions of this decretal law or the regulations, decisions, rules, standards or instructions issued by the Central Bank in implementation thereof, or any measures taken by the Central Bank, including procedures for encountering money laundering, combating terrorist financing, and illegal organizations, the Central Bank shall, at its own discretion, decide to impose one or more of the following penalties or take any of the following measures:
   1. a. Issue, by any means, a caution to the violator.
   2. b. Require the violating Licensed Financial Institution to take necessary actions and measures that the Central Bank deems appropriate to rectify the violation.
   3. c. Prohibit violating Licensed Financial Institution from conducting some operations, or carrying on some Licensed Financial Activities, or impose any restrictions, conditions or limitations on all or certain operations and activities.
   4. d. Impose conditions or restrictions on the license of the violating Licensed Financial Institution.
   5. e. Reduce or suspend the ability of the violating Licensed Financial Institution to draw on the Central Bank’s funds through the Standing Facilities.
   6. f. Require the violating Licensed Financial Institution to deposit funds with the Central Bank without return and for the period Central Bank deems appropriate, in addition to the credit balance referred to in Article (32) of this decretal law.
   7. g. Impose a fine of four hundred (400) basis points over the prevailing base interest rate of the Central bank on any shortfall in the Reserve Requirements referred to in Article (32) of this decretal law.
   8. h. Require the violating Licensed Financial Institution to return to customers the funds it obtained as a result of its violation of the provisions of this decretal law and any excess funds including revenue and profits shall devolve to the Central Bank.
   9. i. Impose a fine between one (1) time and ten (10) times the value of unjust enrichment as determined by the Central Bank, which the violating Licensed Financial Institution has, unlawfully acquired, as a result of the violation.
   10. j. Impose a fine on the violating Licensed Financial Institution not exceeding two hundred million (200,000,000) Dirhams.
   11. k. Delink the violating Licensed Financial Institution from one or all Financial Infrastructure Systems.
   12. l. Withdraw the license of the violating Licensed Financial Institution and strike off its name from the Register.
   13. m. Impose conditions or restrictions on the authorization of the violating Authorized Individual.
   14. n. Impose a fine on the violating Authorized Individual not less than one hundred thousand (100,000) Dirhams and not exceeding two million (2,000,000) Dirhams.
   15. o. Prohibit the violating Authorized Individual from undertaking any Designated Function at the Licensed Financial Institution he works for, or any other Licensed Financial Institution.
   16. p. Any other financial or administrative measures or sanctions issued by a decision of the Board of Directors. The decision specifies the authority entrusted with imposing these sanctions or measures.
2. 2) Decisions to impose the sanctions referred to under item (1) of this article shall be made by the Governor except for the sanction stipulated in item (I) herein shall be made by the Board of Directors.
3. 3) In all cases, the violator shall be notified, officially, of the reasoned decision within fifteen (15) working days from date of its issue. Such notice shall include the following:
   1. a. Content of the decision.
   2. b. Reasons for the decision.
   3. c. Effective date of the decision.
   4. d. A statement advising the violator of its right to submit a grievance against the decision in front of the Grievances & Appeals Committee, in accordance with the provisions of this decretal law.

Article (3)

This Decretal Law shall be published in the Official Gazette, and shall come into force on the day following the date of its publication.

We, Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates,

Having reviewed:

The Constitution; Federal Law No. (1) of 1972 Concerning the Competences of Ministries and the Powers of Ministers, as amended;

Federal Decree-law No. (14) of 2018 Concerning the Central Bank and the Regulation of Financial INSTITUTIONS and Activities, as amended; and

Based on the Proposal of the Minister of Finance and the Approval of the Cabinet,

Hereby decree as follows: