The UAE Government has announced the launch of the digital "Know Your Customer" (KYC) platform, aimed at enhancing the country’s financial infrastructure and accelerating digital transformation in line with global best practices. The platform provides accurate and comprehensive data with full confidentiality, supporting transparency in financial transactions and combating financial crimes, in compliance with local and international regulations.
Strengthening Financial Infrastructure
The platform was introduced under Federal Decree-Law No. 30 of 2024, which establishes a robust legal framework for verifying customer identities and fostering trust in the UAE’s business environment. This initiative supports the national economy by creating a secure infrastructure that boosts the UAE’s global competitiveness in the fintech sector.
Objectives of the Platform
The digital KYC platform offers an integrated mechanism for verifying customer identities, enabling seamless data exchange between financial and banking institutions. It aims to enhance transparency, accelerate digitalization, and ensure compliance with regulations, contributing to a safe and sustainable business ecosystem.
Platform Management and Operations
A specialized company will be established to manage the platform in line with the provisions of the law. The company will be responsible for collecting, analyzing, and issuing KYC reports, ensuring compliance with cybersecurity standards. The executive regulations of the decree-law will outline the operational and technical details.
Data Protection Regulations
The law emphasizes strict confidentiality of customer data, prohibiting unauthorized disclosure or misuse. Violations can result in penalties, including imprisonment of up to two years and fines of no less than AED 50,000. Customers also have the right to access their KYC reports under specific regulatory conditions.
Role of the UAE Central Bank
The Central Bank of the UAE will oversee and regulate the performance of the company operating the platform, establishing technical and operational standards to safeguard data and ensure high-quality services.
A Strategic Leap for the Financial Sector
The digital KYC platform represents a significant milestone in enhancing the UAE’s leadership in the banking and financial sectors. By adopting advanced technologies, the platform caters to the needs of financial institutions, strengthens efforts to combat financial crimes, and reinforces the UAE’s global position as a financial and technological hub.
Source: WAM
