Article (121): Protection of Consumers of the Licensed Financial Institutions

Fed Law 14/2018 Issued on 1/10/2018

1) The Central Bank shall establish regulations relating to protection of consumers of Licensed Financial Institutions, in line with the nature of activities the latter carry on and the services and products they provide.

2) The Central Bank may establish a unit that enjoys independent legal personality, to receive and decide on complaints of customers of licensed financial institutions. The Board of Directors shall issue a resolution establishing this unit, specifying its tasks, charter, powers and the human resources and financial regulations applicable thereto.

3) 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.

4) Licensed Financial Institutions may not charge interest on accrued interest- compound interest- in relation to facilities extended to customers, and shall, in this regard, follow the rules and controls prescribed in regulations issued by the Central Bank.

_{This article has been amended by}_{Decretal Federal Law No. (09) of 2021}_and_{Decretal Federal Law No. (23) of 2022}_{. You are viewing the latest version. To view the previous version, click the version box below}.

Version 2_{(effective from 26/07/2021 to 02/01/2023)}

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)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)Licensed Financial Institutions are not permitted to charge interest on accrued interest charged on any credit or funding facilities granted to customers.

Version 1_{(effective from 31/10/2018 to 26/07/2021)}

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.

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) Licensed Financial Institutions are not permitted to charge interest on accrued interest charged on any credit or funding facilities granted to customers.