Under the Federal Law No. (14) of 2018 concerning the Central Bank and the Organization of Financial Facilities and Activities, the capital of the Central Bank was raised to 20 billion dirhams, and allows establishment of a general reserve of up to four times the paid up capital. The provisions of this law does not apply to the Financial Free Zones in the nation and the financial institutions regulated by the authorities of those zones.
The law allows the Central Bank to give up the privilege of issuing money, organising financial activities and establishing the basis for its practice and setting the standards necessary for developing and strengthening precautionary. It also granted powers to the Central Bank to manage foreign reserves and to maintain sufficient reserves of assets in foreign currency to cover the monetary base.
Further to the new enforcement powers granted to CBUAE, an independent committee, named “Grievances & Appeals Committee" will be established under the chairmanship of a court of Appeal judge. The Committee shall have the sole and exclusive jurisdiction to decide on grievances and appeals against any decisions by CBUAE related to licensing, authorisation of individuals, and licensing and designation of financial infrastructure systems.
The new law also contains specific provisions for customers' protection, and sets out comprehensive rules governing the confidentiality, protection, and appropriate use of customer banking and credit information, and to facilitate greater financial inclusion. Law (14), of 2018 shall supersede Federal Law No (10) of 1980 Regarding the Central Bank, The Monetary System & Organisation of Banking, along with Federal Law No (6) of 1985, regarding Islamic Banks, Financial Institutions and Investment companies.
View the text of the law