Article (28) Compliance with Laws and Central Bank Regulations
C 3/2023 Effective from 29/9/2023
28.1
Restricted Licence Finance Companies and Agents must institute adequate compliance arrangements to ensure that they remain in full compliance, where applicable, with relevant UAE laws, including the Central Bank Law and the Commercial Companies Law, this Regulation and any other applicable Regulations. Any breaches must be reported to the Central Bank.
28.2
The Central Bank may set additional prudential or other requirements for Restricted Licence Finance Companies and/or Agents. Such requirements may include, but are not limited to, restrictions on the size and scale of activities; requirements for specific governance or management arrangements; and/or capital adequacy requirements.
28.3
Restricted Licence Finance Companies and Agents must comply with the AML Law; and address money laundering and terrorist financing risks through appropriate preventive measures to deter abuse of the sector as a conduit for illicit funds, and detect money laundering and terrorist financing activities and report any suspicious transactions to the Financial Intelligence Unit at the Central Bank.
28.4
Restricted Licence Finance Companies and Agents must be operated prudently and with competence in a manner that will not adversely affect the interests of Borrowers. Restricted Licence Finance Companies and Agents must also comply with all applicable regulatory requirements for consumer protection of the Central Bank, per the CBUAE’s Consumer Protection Regulation (Circular No. 8 – 2020) and related standards which may be updated from time to time.
28.5
Restricted Licence Finance Companies and Agents must ensure that Outsourcing service providers, maintain an appropriate level of information security, risk management, and service delivery; and are in compliance with all relevant UAE laws and Central Bank Regulations applicable to their outsourced services.