For the purposes of this Regulation, words and expressions shall have the usual meaning assigned to, unless the context requires otherwise, as mentioned below and/or defined in other Laws and Regulations:

1. Advertising: The activity of marketing, designing, producing and/or packaging information about a Licensed Financial Institution and its Financial Products and/or Services for the purpose of public display, including financial promotion to recruit new Consumers and/or induce existing Consumers to try Financial Products and/or Services.
    
2. Advice: Specific Advice:
   
   Specific Advice on Financial Products or Services includes any method of communication that:
    
   1. provides an opinion, evaluation, recommendation, and / or biased information / comparisons to a Consumer or when acting as a Consumer’s agent; and
       
   2. the Advice or actions could reasonably be regarded as having the intent to influence a Consumer’s choice or decision to select, buy, sell, hold, subscribe to a particular financial product/service, related options or an interest in a particular financial product/service.
   
   Generic Advice:
   Giving Generic Advice in any newspaper, journal, magazine, broadcast service, education initiatives or similar service in any medium if the principal purpose of the publication or service, taken as a whole, is neither:
      
   1. that of giving advice of the kind specified in the Specific Advice definition; nor
       
   2. that of leading or enabling Consumers to buy, sell, subscribe for a particular financial product/service of the kind in Specific Advice.
       
3. Annual Interest/Profit Rate: The annual amount to be paid by a Borrower / Financee as expressed as a percentage of the total amount of the credit facility.
    

   The annual amount earned by a Consumer and expressed as a percentage of the total amount of a deposit, investment and other financial product.

4. Annual Percentage Rate (APR): The percentage of the total amount that a Borrower owes to a Lender including cost of other Fees charged by the Lender annually for the Borrower to use the Lender's funds or asset, or charged by a Financier to a Financee as part of price/rental, due to the Financee’s purchase or renting of asset from the Financier.
    
5. Applicable Laws: Applicable UAE Laws and amendments thereof.
    
6. Arrears: The state of being behind in the discharge of obligations, an unfinished duty and or an unpaid and overdue debt in accordance with the loan/financing contract, by the scheduled due date.
    
7. Authorized Agents: Authorized Agent is a commercial representation by a contract pursuant to which the authorized agent undertakes to enter into transaction in the name and for the account of the Licensed Financial Institution and the Licensed Financial Institution shall be liable for any transactions and contracts entered into by the authorized agent within the limits of the authority conferred to the authorized agent by the Licensed Financial Institution.
    
8. Base Lending Rate: Interest rate that is set as a benchmark against which Credit Facilities are to be priced and re-priced.
    
9. Board: A Licensed Financial Institution’s Board of Directors (Owner/Partners in the absence of a Board of Directors).
    
10. Borrower / Financee: A Consumer to which a Licensed Financial Institution provides Credit as a Service and/or Product.
     
11. Call-back: A follow-up call to a Consumer that a Licensed Financial Institution conducts to assess whether a Consumer has received and understood the disclosures of a Product and/or Service provided by the Licensed Financial Institution.
     
12. Central Bank: The Central Bank of the United Arab Emirates.
     
13. Complaint: An expression of dissatisfaction by a Consumer with a product, service, policy procedure or actions by the Licensed Financial Institution that is presented to an Employee of the Licensed Financial Institution in writing or verbally.
     
14. Commitment to Donate: The practices related to the customer’s commitment to donate to a third party due to late payment of a due amount in a financing arrangement.
     
15. Compliance of an IFI with Islamic Shari’ah: Compliance of an IFI with Islamic Shari’ah refers to compliance with Shari’ah in accordance with:
     
    1. resolutions, fatawa, regulations, and standards issued by the Higher Shari’ah Authority (HSA) in relation to licensed activities and businesses of IFIs (“HSA’s Resolutions”); and
        
    2. resolutions and fatawa issued by ISSC of respective IFI, in relation to licensed activities and businesses of such institution (“the Committee’s Resolutions”), provided they do not contradict HSA’s Resolutions.
        
16. Conflict of Interest: A Conflict of Interest occurs when the interests of a client are at odds with the interests of the firm, an employee or another client.
     
17. Consumer: A Consumer is a customer for the purpose of this Regulation and the accompanying Standards. A Customer is any Natural Person or Sole Proprietor who obtains or may prospectively obtain Financial Services and/or Products – with or without charge – to satisfy his/her personal need or others’ needs.
     
18. Cooling-off Period: A period of time after agreeing to the Product and/or Service that allows a Consumer to reconsider the purchase and to withdraw from the Contract without suffering any undue costs, obligations or inconvenience. The Cooling-off Period begins immediately after signing of the contract.
    
    For Shari’ah compliant products and services, relevant Shari’ah standards for reconsideration by the Consumer may apply.
     
19. Credit Information Agency: Al Etihad Credit Bureau and any credit information agency established for the purpose of credit reporting requirements.
     
20. Credit Products: Products that provide funding including any advance, loan/financing or other facility in whatever form, including the giving of a guarantee or undertaking of any surety obligations for a Consumer.
     
21. Data/Personal Data: A collection of organized information, facts, concepts, instructions, observations or measurements, in the form of numbers, alphabets, symbols, images or any other form, that are collected, produced, or processed by Licensed Financial Institutions.
    
    Personal Data is any information relating to an identified natural person or identifiable natural person. "Identifiable natural person" is defined as a natural person who can be identified, directly or indirectly, in particular by reference to an identification number or to one or more factors specific to their biological, physical, biometric, physiological, mental, economic, cultural or social identity.
     
22. Decretal Law: Decretal Federal Law No. (14) Of 2018 Regarding the Central Bank & Organization of Financial Institutions and Activities.
     
23. Deposit Products: Deposit Products include savings accounts, current accounts, digital accounts, term deposits, cheques, banking and payment wallets and related stored value cards.
     
24. Digital Channels: Internet, mobile phones, Automated Teller Machine (ATMs), Point of Sale (POS) terminals, mobile applications, or other similar digital channels.
     
25. Disposable Income: A person’s Income after taking into account basic personal expenses, net interest/profit and dividends received and the payment of taxes and social contributions.
     
26. Early Settlement Fee: A Fee charged by a Lender/Financier to a Borrower / Financee who terminates a Credit Facility by paying the outstanding amount before a date specified in the contract.
     
27. Error: An outcome of an action that is contrary to an agreement, understanding or documented policy or operational and control procedures, which has a financial or other effect on one or more Consumers.
     
28. Fee: Any fees, charges, penalties and commissions incurred on a Product and/or Service.
     
29. Financial Crime Compliance: Financial Crime Compliance is the requirement to comply with, including and not limited to, all applicable fraud, anti-money laundering, counter-terrorism financing, sanctions, bribery and corruption laws, rules and regulations.
    
    For the sake of clarity, this Regulation / accompanying Standards do not impose, reduce or modify any requirements pertaining to the compliance with all laws, rules and regulations relating to Financial Crime Compliance.
     
30. Financial Products and/or Services: Products and/or Services (including stored value facilities) provided by Licensed Financial Institutions, with or without charge, through their Financial Activities. It will be referenced to as Products and/or Services in this Regulation.
     
31. Higher Shari’ah Authority (HSA): An authority that determines rules, standards, and general principles applicable to Shari’ah compliant businesses and Licensed Financial Activities, and supervises and oversees the Internal Shari’ah Supervision Committees in accordance with the Decretal Federal Law No. (14) of 2018, Regarding the Central Bank & Organization of Financial Institutions and Activities.
     
32. Financial Complaint Resolution Mechanism: A Complaint resolution system provided by Licensed Financial Institutions for the purpose of resolving Consumer Complaints.
     
33. Internal Shari’ah Supervision Committees (ISSC): A body appointed by an IFI, comprised of scholars specialized in Islamic financial transactions, which independently supervises transactions, activities, and products of the IFI and ensures they are compliant with Islamic Shari’ah in all its objectives, activities, operations, and code of conduct.
     
34. Islamic Financial Institution (IFI): The Licensed Financial Institutions that conduct all or part of their activities and businesses in accordance with the provisions of Islamic Shari’ah.
     
35. Key Facts Statement: A concise and user-friendly summary, in plain language, of the key features and risks of a Product and/or Services for a Consumer.
     
36. Lender/Financier: A Licensed Financial Institution that provides Credit as a Service and/or Product to its Consumers in any manner or method.
     
37. Licensed Financial Activities: The financial activities subject to Central Bank licensing and supervision as specified in Article (65) of the Decretal Federal Law No. (14) of 2018.
     
38. Licensed Financial Institutions: Banks and other financial institutions licensed in accordance with the provisions of the Decretal Federal Law No. (14) of 2018, to carry on a Licensed Financial Activity or more, including those which carry on the whole or a part of their business in compliance with the provisions of Islamic Shari’ah, and are either incorporated inside the State or in other jurisdictions, or have branches, subsidiaries or Representative Offices inside the State.
     
39. Market: The financial Market where Licensed Financial Institutions promote and/or sell Financial Products and/or Services and compete for Consumers.
     
40. Market Conduct: Market Conduct is the focus on Licensed Financial Institutions' Market place actions, behavior and practices that are applied in providing Financial Products and/or Services to the market.
     
41. Minority Group: A category of people who experience relative disadvantage as compared to members of a dominant social group, Minority Group membership is typically based on differences in observable characteristics or practices, such as ethnicity, race, religion or determination.
     
42. Mumatil: With respect to Shari’ah transactions, it is a debtor who refuses to pay a debt that is due, without any legitimate reason after receiving demand for payment.
     
43. Outsourcing: An agreement with another party either within or outside the UAE, including a party related to the Licensed Financial Institution, to perform on a continuing basis an activity which currently is or could be undertaken by the Licensed Financial Institution itself.
     
44. Partial Settlement Charge: A fee levied by the Licensed Financial Institution on the Consumer in the event that the amount of the loan/financing is repaid in part before a date or event.
     
45. People of Determination: A person suffering from a temporary or permanent, full or partial deficiency or infirmity in his physical, sensory, mental, communicational, educational or psychological abilities to an extent that limits his possibility of performing the ordinary requirements.
     
46. Permissible: Any action that is specifically permitted by regulation or standards, or any actions which the Consumer is allowed by laws, rules and regulations to agree to and is confirmed by expressed consent.
     
47. Person: A natural or juridical Person, as the case may be.
     
48. Reducing Balance Method: An interest/profit amount calculation method where the interest/profit to be paid by the Borrower / Financee is based on the outstanding loan/credit amount after periodic repayments/payments.
     
49. Regulation: The term includes any resolution, legislation, circular, rule, instruction, standard or notice issued by the Central Bank.
     
50. Regulatory Supervision: Supervision of Licensed Financial Institution by the Central Bank.
     
51. Retail Operations: A Licensed Financial Institution’s operational practice in the design, production, promotion, sales and distribution of its Financial Products and/or Services to Consumers.
     
52. Senior Management: The executive management of the Licensed Financial Institution responsible and accountable to the Board (or Owner/Partners where there is no Board of Directors) for the sound and prudent day-to-day management of the Licensed Financial Institution, generally including, but not limited to, the chief executive officer, chief financial officer, chief risk officer and heads of the compliance and internal audit functions.
     
53. Sole Proprietorships: A legal entity for the undertaking of commercial or professional activities owned and operated by a natural person, who is in complete control of the business operations and profits and bears personal unlimited liability. For clarity, a Sole Proprietorship is not a limited liability company, LLC.
     
54. Staff: One or more employee(s) of the Licensed Financial Institution or third parties acting in any capacity for or on behalf of the Licensed Financial Institution.
     
55. State: The United Arab Emirates.
     
56. Stored Value Facility (SVF): A facility (other than cash) for or in relation to which a Customer, or another person on the Customer’s behalf, pays a sum of money (including Money’s Worth such as values, reward points, Crypto-Assets or Virtual Assets) to the issuer, whether directly or indirectly, in exchange for:
     
    1. the storage of the value of that money (including Money’s Worth such as values, reward points, Crypto-Assets or Virtual Assets), whether in whole or in part, on the facility; and
        
    2. the “Relevant Undertaking”. SVF includes Device-based Stored Value Facility and Non-device based Stored Value Facility.
        
57. Suspicious Transactions: Any transaction, attempted transaction, or funds which a Licensed Financial Institution has reasonable grounds to suspect as constituting in whole or in part, and regardless of the amount or the timing any of the following:
     
    1. The proceeds of crime (whether designated as a misdemeanor or felony, and whether committed within the State or in another country in which it is also a crime);
        
    2. Being related to the crimes of money laundering, the financing of terrorism, or the financing of illegal organizations;
        
    3. Being intended to be used in an activity related to such crimes.
        
58. Systemic Error: Error that affects a group in a similar manner and to a similar magnitude.
     
59. Third Party: Any person, group of persons or organization external to, and not a related party to, a Licensed Financial Institution.
     
60. UAEPNG System: The Persona Non Grata System established by the Central Bank.
     
61. Unauthorized Transaction: Unauthorized transaction includes the execution of payment instruction without explicit authentication or authorization from the consumer and incorrectly executed payment transactions.
     
62. Undue Pressure: Any practice, communication or action that could be reasonably considered excessive or persistent in the circumstances.
     
63. Writing: For any requirement of communications and signatories, declarations, consents, agreements or other instruments/requirements in writing, for the sake of clarity, these terms applies to electronic, digital and paper based insofar an Electronic Document or Record satisfies the requirement of the provision of Federal Law No. (1) of 2006 are complied with.
     
64. Year: The Gregorian calendar year.