Federal Decree by Law No. (14) of 2018, Concerning the Central Bank and the Regulation of Financial Institutions and Activities (finance and banking law)

Article (1) 
Definitions  
In application of the provisions of this Decree by  Law, the following words and expressions  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 shall have the meanings assigned thereto respectively unless otherwise required by the 
context:  
 The State or UAE  : United Arab Emirates  
 The Government  : the Federal Government  
 The Ministry  : Ministry of Finance  
 The Minister  : Minister of Finance  
 The Central 
Bank  : the Central Bank of UAE  
 The Regulatory 
Authorities in 
the State  : The Central Bank and the Securities and Commodities Authority 
(SCA)  
The Board of 
Directors  : Board of Directors of the Central Ban  
 The Governor  : Governor of the Central Bank  
 The Public 
Sector  : The Federal Gov ernment, Governments of Emirates that are 
Members at the Federation, authorities, institutions and public 
companies fully owned thereby which provide public services 
and do not primarily practice any activities pertaining to Money 
and Capital Markets.  
 
Government- Affi
liated Entities  : The legal person wherein either the government, any 
government members of the Federation, or any of the companies 
affiliated thereto owns more than fifty percent (50%) of its 
capital.  
 Financial Free 
Zones  : Free Zones gover ned by the provisions of Federal Law No. (8) of 
2004  Concerning Financial Free Zones, and the Laws amending 
thereto.  
 Licensed 
Financial 
Institutions  
 : Banks and other financial inst itutions licensed under the 
provisions of this Decree by Law to perform one or more of the 
Licensed Financial Activities, including those performing all or 
part of its activities in accordance with the provisions of Islamic  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 Law, provided that said institut ions are incorporated inside the 
UAE or other Jurisdictions, or have branches, subsidiaries or 
representative offices thereto inside the UAE  
 Banks  : Any legal person licensed in accordance wit h the provisions of 
this Decree by Law to perform the "accept deposits" as a main 
activity in addition to any other Licensed Financial Activities.  
 Other Financial 
Institutions  : Any legal person, other than banks, licensed in accordance with 
the provisio ns of this Decree by Law to perform one or more 
licensed financial activity.  
 Higher Sharia 
Authority (HSA)  : The Authority referred to in article (17) of this Decree by Law.  
 Money 
Exchange House  : The legal person licensed in accordance with this Decre e by Law 
to perform the activities of cash exchange, monetary transfers 
within or outside the UAE and any other businesses to be 
defined by the Central Bank.  
 Representative 
office  : An office licensed in accordance with the provisions of this 
Decree by L aw to represent a financial institution incorporated in 
other jurisdictions.  
 Licensed 
Financial 
Activities  : Financial activities licensed and controlled by the Central Bank as 
set forth in article (65) of this Decree by Law.  
 Authorized 
Person  : Any na tural person authorized in accordance with the provisions 
of this Decree by Law to perform any of the Designated Tasks.  
 Designated 
Tasks  : Tasks of the authorized person who performs them at any 
Licensed Financial Institution or for the interest thereof which 
affect the activity of the institution.  
 Central Bank's 
Own Funds  : The Capital and reserves of the Central Bank referred to in Article 
(5) hereof.  
 
Foreign -Exchang: Foreign assets held by the Central Bank denominated in any 
reserve curr ency. Such assets are held to cover the Bank's  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 e Reserves  liabilities.  
 Primary Dealers  : Any bank that purchases, sells, or recovers any securities issued 
by the Public Sector inside the UAE either for itself or on behalf 
of third party in accordance with the terms  and conditions 
developed by the Central Bank.  
 Standing 
Facilities  : Monetary policy instruments that are available to a Licensed 
Financial Institution to enable the latter to manage its liquidity, in 
accordance with the controls and instructions issued by the 
Central Bank and based on the provisions of this Decree -Law.  
 Financial 
Infrastructure 
System  : Means either (1) Clearing and Settlement, or (2) Retail Payment 
System whether established, operating, licensed or controlled by 
Regulatory Authorities of the State.  
 Designated 
System  : The infrastructure system designated by the Central Bank to have 
a regulatory importance in accordance with the provisions of this 
Decree by Law.  
 Clearing and 
Settlement 
System  : Any system established for the followin g purposes: (1) clearing 
or payment of liabilities, or (2) clearing or settlement of liabilities 
concerning transfer of certain book securities or transfer of those 
securities.  
 Retail Payment 
System  : Any system intended to transfer moneys, instruments, 
mechanisms and related arrangements whereby large volume of 
payments of relatively low value in the form of cheques, credit 
transfers, direct debits, or Payment Card Operations are handled.  
 Stored Value 
Facility (SVF)  : Non -cash facilities in an electron ic or magnetic form purchased 
by the user to be used as a payment mean for commodities and 
services.  
 Participant  : In connection with financial infrastructure, it means any person 
who is a party to the arrangement for which the system is 
created.  
 Settlement : In connection with financial infrastructure, it means the person  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 Institution  who (1) provides settlement accounts for the participants, and 
for any central settlement mediator in capital markets within the 
clearing and settlement system in order to  settle transfer orders 
via the system, and provides credit facilities for settlement 
purposes, if necessary, or (2) provides settlement services to any 
retail payment system.  
 Default 
Arrangements  : In connection with financial infrastructure, it means s ystem 
arrangements to limit systemic risks and other risks in case of the 
presence of a Participant in the system who is or is likely to 
become unable to fulfill his transfer -order liabilities. These 
arrangements include any arrangements made by the system  
operator or its settlement institution for: (1) netting of liabilities 
accrued for or by the participant, (2) closing the open financial 
position of a participant, or (3) liquidating collateral securities to 
secure payment of liabilities owed by the parti cipant.  
 Transfer Order  : In connection with Financial Infrastructure System, shall mean 
any of the following instructions:  
1. Instructions by a Participant to make funds at the disposal of 
another Participant, to be transferred, on a book -entry basis, in 
the accounts of the Settlement Institution for a Clearing and 
Settlement System;  
2. Putting the funds in another way under the control of a 
Participant pursuant to the rules and procedures of the Financial 
Infrastructure System;  
3. Instructions to dischar ge from liability to pay for the purposes 
of the operational rules of a clearing and Settlement System;  
4. Instructions by a Participant either to settle an obligation by 
way of transferring book securities, or transferring those 
securities;  
5. Instruct ions by a Participant which gives rise to assuming  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 responsibility or discharge from the obligation to pay the 
amounts owed for retail operations.  
 Netting  : In connection with Clearing and Settlement System, means the 
conversion of the various liabilities  owed to or by a Participant 
by or towards all the other Participants in the system into one net 
liability owed to or by the Participant.  
 Mandatory 
Reserve  : The percentage of deposits existed at licensed financial 
institutions received the deposit which  the Board of Directors 
may decide to be retained by the Central Bank as per the terms 
and conditions developed thereby.  
 Eligible 
Securities  : Securities approved by the Central Bank and which the Licensed 
Financial Institution may present as collaterals  for withdrawal 
from the Central Bank's funds, in accordance with the controls 
and instructions issued by the Central Bank and based on the 
provisions of this Decree -Law.  
 Currency  : The UAE official national currency in the form of paper notes, 
metal coi ns and digital currency, and its unit is referred to as the 
"Dirham".  
 Monetary Base  : It includes the following: (1) Issued Currency; (2) Aggregate 
balances of current accounts of Licensed Financial Institutions 
with the Central Bank including the Mandat ory Reserve, in 
addition to any other funds deposited with the Central Bank for 
clearing and settlement operations; and (3) the outstanding 
balance of securities and financial instruments issued by the 
Central Bank.  
 Grievances and 
Appeals 
Committee  : 
The  committee referred to in article (136) of this Decree by Law.  
 Person  : Any natural or legal person, as the case may be.  
 Year  : Calendar year.   
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 Part One  
The Central Bank   
Chapter One  
Organization and Objectives of the Central Bank

Article (2) 
Autonomy  of the Central Bank  
1. The Central Bank shall be considered a Federal public institution having its own legal 
personality. It shall enjoy the financial and administrative autonomy, and the legal 
capacity required to conduct all duties and activities ens uring the achievement of its 
objectives.  
2. The Central Bank shall not be governed by the provisions of laws pertaining to public finance, tenders and auctions, public audit and public offices. It shall be governed by its 
own regulations in these respect s. 
3. The functions of State Audit Institution (SAI) as per Federal Law No. (8) of 2011  
Regarding Re -organization of the State Audit Institution, shall be confined to post -audit 
of the Central Bank works. It may not interfere with running the Central Bank works, nor 
challenge its policies.

Article (3) 
The Central Bank Headquarters  
The headquarters of the Central Bank and its official address shall be located in the  UAE 
capital. By virtue of the Board of Directors' approval, the Central Bank may establish 
subsidiaries and open branches, offices and agencies thereof inside and outside the UAE. It 
may appoint agents and correspondents inside and outside the UAE.

Article (4) 
Main Objectives and Functions of the Central Bank  
The Central Bank shall aim at achieving the following objectives:  
1. Maintaining stability of the national Currency within the framework of the monetary  
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 system;  
2. Contributing to the promot ion and preservation of stability of the financial system in the 
State;  
3. Ensuring prudent management of the foreign exchange reserves of Central Bank; and  
4. Creating an appropriate environment to develop and enhance the role of the insurance 
industr y in insuring individuals, property and liabilities against risks in order to protect 
the national economy, encourage fair and effective competition, provide the best 
insurance services at competitive prices and coverage, and localize jobs in the insurance  
market.  
For the purpose of achieving its objectives, the Central Bank shall undertake the following 
functions and competencies:  
a. Developing and implementing the monetary policy, taking into consideration the 
general strategy of the State;  
b. Exercising the right of currency issuance;  
c. Regulating Licensed Financial Activities, establishing the foundations for carrying out 
such activities, and determining the standards required for developing and promoting 
prudential practices in accordance with the provisions of the present Decree -Law and 
international standards;  
d. Setting up appropriate regulations and standards for protection of customers of Licensed Financial Institutions;  
e. Monitoring the credit status in the State to contribute to achieving balanced growth of 
the national economy;  
f. Managing foreign exchange reserves to hold, at all times, sufficient reserve assets denominated in foreign currencies to cover the Monetary Base in accordance with the 
provisions of the present Decree -Law;  
g. Regulating, developing, supervising and maint aining soundness of the Financial 
Infrastructure in the State, including electronic payment systems, digital currency, and Stored Value Facilities;  
h. Regulating, developing and supervising the insurance sector and business, and 
proposing and implementin g the legislation governing the same;   
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 i. Receiving applications for establishing and opening branches and representative offices 
of insurance and reinsurance companies, insurance agents and related professions, and 
issuing the required licenses in accord ance with the legislation governing the same;  
j. Protecting the rights of the insured and beneficiaries of insurance business and 
monitoring the solvency of insurance companies to provide adequate insurance 
coverage in order to protect such rights; and  
k. Working on improving the performance and efficiency of insurance companies and 
obliging them to abide by the code of professional conduct and ethics in order to 
enhance their capacity to better serve beneficiaries of insurance and create positive 
compe tition among them.  
  
Chapter Two  
Capital, Reserves and Accounts of the Central Bank

Article (5) 
Capital and Reserves  
1. The capital of the Central Bank shall be Twenty Billion Dirhams (AED 20,000,000,000);  
2. A sum of Seventeen Billion, Five Hundred Million Dirhams (AED 17,500,000,000) shall 
be transferred from the General Reserve Account to increase the capital to the limit 
aforementioned in Clause (1) of this Article;  
3. The capital may be increased by virt ue of a federal decree based on a proposal of the 
Board of Directors presented by the Minister and approved by the Cabinet. Such 
increase shall be paid either by way of transfer from the General Reserve Account or 
directly by the Government;  
4. The capit al of the Central Bank may be reduced only by virtue of a law;  
5. The Central Bank s hall create a General Reserve Account which balance may not exceed 
quadruple (4 times) of the paid -up capital aforementioned in Clause (1) of this Article. 
Thereafter, the remaining net profits shall automatically be transferred to Government;  
6. By the end of each fiscal year, the Board of Directors shall determine the Central Bank's annual net profits after deducting administrative and operational expenses, and 
allocating necessary funds accounting for depreciation of assets, reserves, provisions to  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 face the bad and doubtful debts, end of service benefits for the Central Bank staff, along 
with the contingencies and/or for all other purposes as may be determined by the Board 
of Directors, in addition to all other financial encumbrances normally deductible  by 
banks from their net profits, in general. The net profits for each fiscal year shall be 
deposited in the General Reserve Account;  
7. The Cabinet shall issue a resolution specifying the percentage of profits to be retained by the Central Bank until th e total balance of the General Reserve Account reaches the limit 
aforementioned in Clause (5) of this Article;  
8. Should the balance of the General Reserve Account at end of any fiscal year be insufficient to cover the losses of the Central Bank, the Gov ernment shall cover such 
deficit.

Article (6) 
Fiscal Year  
The Central Bank's Fiscal Year shall begin on the first of January and shall end on the 
thirty -first of December of every year.

Article (7) 
Organizing Operations and Accounts  
The Central Bank  operations shall be performed, and the balance sheet and accounts shall 
be prepared and maintained in accordance with the international standards and banking rules and practices. The Central Bank's transactions with third parties shall be considered 
commercial.

Article (8)  
Accounts Auditing  
Board of Directors shall appoint and determine remuneration of one or more auditors to be 
selected periodically to audit the accounts of the Central Bank.  
   
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Article (9) 
Accounting Statements and Reports to be submitt ed 
1. The Central Bank shall submit an annual report on the following within three (3) months 
as of the end of the fiscal year:  
a. Final accounts of the Central Bank endorsed by the auditors. Said accounts shall be published in the Official Gazette;  
b. Activities and business of the Central Bank throughout the year;  
c. An overview of monetary, banking and financial developments in the UAE.  
2. The Central Bank shall submit the following to the Minister:  
a. A copy of the annual report aforemention ed in Clause (1) of this Article;  
b. The information required by the Minister regarding monetary, banking and financial 
developments in the UAE, in addition to a bi- annual report on all aspects pertaining 
to said developments;  
c. A quarterly statement of the assets and liabilities of the Central Bank. Said statement 
shall be published in the Official Gazette.  
  
Chapter Three  
Management of the Central Bank  
Section One  
Board of Directors

Article (10)  
Board Member  
The Central Bank shall be managed by a Board of Directors comprised of (7) members including the Chairman of the Board and the Governor.

Article (11)  
Appointment of Board Members  
1.  The Members of the Board of Directors shall be appointed by a Federal Decree based on 
a Recommendation of the Cabinet for a four -year term, renewable for similar periods,  
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 and the Decree shall designate from among the Members of the Board the Chairman of 
the Board and one or more Deputies.  
2.  The Chairman of the Board and  the Deputies thereof and the Governor shall be 
appointed on a Minister grade.  
3.  The Chairman of the Board shall issue a resolution to determine the powers of his 
deputies.  
4.  Subject to the provisions of Clause (3) of this article, the Deputy Chairman of the Board 
shall replace the Chairman of the Board in the event of his absence or his position being 
vacant; likewise, the Governor shall replace the Chairman of the Board and his Deputies 
in the case of their absence or their position being vacant.

Article (12)  
Conditions of Membership  
The following conditions shall be fulfilled by the board member:  
1. Shall be an Emirati national;  
2. Shall be an expert in economic or fin ancial or banking affairs;  
3. May not have been declared bankrupt or ceased to repay his debts;  
4. May not have been convicted of a crime or misdemeanor involving moral turpitude or 
dishonesty unless he is rehabilitated;  
5. Shall not be a working Minister except for the Chairman of the Board of Directors;  
6. Shall not be a member of the Federal National Council (FNC);  
7. Shall not be occupying any job, or position, or be a member of a board of directors of any 
institution licensed by any regulatory authority in the UAE or by any other regulatory 
authority in the financial free zones;  
8. Shall not be a reviewer or auditor of accounts of a Licensed Financial Institution, or an owner or agent or a partner of any accounts au diting companies.

Article (13)  
Resignation or Vacancy of a Position  
In case that a board member files his/her resignation or his/her position becomes vacant for  
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 any reason, a successor shall be appointed for the remaining period of the term  of office of 
the Board in accordance with the membership conditions aforementioned in article (12) of 
this Decree by Law.

Article (14)  
Termination of Membership  
1. Board membership shall terminate by the expiry of the board membership term without 
renewal, or by death or resignation of a board member. It may be terminated also by 
virtue of Federal Decree to be enacted upon approval of the Cabinet in the following 
cases:  
a. If the board member commits serious mistakes in the management of the Central 
Bank or commits a serious violation to his duties;  
b. If the member does not attend three (3) consecutive board meetings without the Board's approval, unless such absence is due to an official duty, annual or sick leave, 
or for an acceptable excuse;  
c. If the member ceases to fulfill any of the membership conditions aforementioned in article (12) herein;  
d. If the member becomes unable to perform his duties for any reason.  
2. Board members shall continue to perform their duties after expiry of their term of membership without extension until new members are appointed.  
  
Section Two  
Terms of Reference and Meetings of the Board of Directors

Article (15)  
Powers and Duties of the Board of Directors 
The Board of Directors shall enjoy, within the limits defined by the provisions of this 
Decree- Law, full powers to achieve the objectives of the Central Bank. In particular, the 
Board of Directors shall:  
1. Approve the regulations, rules, standards, inst ructions and work controls to perform its  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 tasks and functions, and take all measures and actions necessary to implement the 
provisions of this Decree -Law;  
2. Formulate policies concerning the use and management of private funds and the Central Bank's ass ets, and supervise the implementation of such policies;  
3. Decide on issues pertaining to the issuance of currency and the withdrawal thereof from 
circulation;  
4. Issue the regulations regulating Licensed Financial Activities and decide on the issues 
pertaining thereto, including control and supervision regulations and procedures and 
specify terms and rules related to granting licenses for practicing Licensed Financ ial 
Activities and permits for practicing the Designated Tasks;  
5. Approve the regulations, rules, standards, instructions and work controls related to 
insurance, reinsurance, insurance agents and professions and activities related thereto;  
6. Formulate policies and approve regulations pertaining to prudential regulation, standards and guidelines concerning Licensed Financial Activities;  
7. Develop the regulations and standards on the protection of Licensed Financial 
Institutions' customers;  
8. Approve the regulations, controls and procedures needed to counter money laundering 
and combat the financing of terrorism and unlawful organizations;  
9. Take necessary measures and actions and impose administrative penalties against any 
person violat ing the provisions of this Decree -Law or the regulations issued in 
implementation hereof;  
10. Approve the regulations and rules pertaining to the maintenance of integrity and 
efficiency of financial infrastructure systems licensed, established, develope d or 
operated by the Central Bank;  
11. Adopt risk management and compliance policies of the Central Bank;  
12. Adopt the Articles of Association of the Central Bank, issue the organizational structure 
and administrative, financial and technical regulations and specify powers and 
competences within the limits of the provisions of this Decree -Law;  
13. Adopt HR policies of the Central Bank;  
14. Approve corporate governance rules of the Central Bank, including a collection of rules  
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 and regulat ions aiming at achieving quality and excellence of performance, in line with 
the government strategic plans and their objectives;  
15. Decide on loans and advances granted to the Government, pursuant to the provisions of 
this Decree- Law;  
16. Approve settlements and reconciliations pertaining to the Central Bank's functions;  
17. Approve the Central Bank's draft annual budget and approve any amendments thereto throughout the year;  
18. Approve annual final accounts of the Central Bank and annual net profits;  
19. Establish an objection mechanism related to the insurance activity, pursuant to the legislation regulating the same; and  
20. Examine all other issues falling within the sco pe of its powers and which would achieve 
the objectives and perform the functions of the Central Bank pursuant to the provisions 
of this Decree -Law.

Article (16)  
Formation of Committees and Delegation of Powers  
1. The Board of Directors may form commit tees, as deemed appropriate, to assist the Board 
of Directors in performance of its tasks and competencies pursuant to the provisions of 
this Decree by Law. Said committees may be formed from within or outside the Board of 
Directors. Also, the Board of Dir ectors may form consultancy committees and councils 
comprising persons from outside the Central Bank and may define the remunerations of 
members of said committees and councils;  
2. The Board of Directors may delegate some of its powers to the Chairman, the Governor, 
or to any committee formed from within the Board of Directors;  
3. The Board of Directors may review competencies and per formance of committees 
formed pursuant to Clause (1) of this Article annually. It may take appropriate actions to 
cause said committees adhere to professional and international standards, and to work and governance controls.  
    
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Article (17)  
The Higher Shar ia Authority (HSA)  
1. Pursuant to this Decree -Law, a sharia authority called the "Higher Sharia Authority 
(HSA)" shall be established and report to the Central Bank. The members of such 
Authority shall not be less than five (5) members and not more than seven (7) members 
from among experts and specialists in the jurisprudence of financial Islamic transactions.  
2. The Board of Directors shall approve the Authority's working system, functions, 
competences and the mechanism for funding costs of its establishment and continuation 
of operation.  
3. The Governor shall issue a resolution whereby the HSA shall be formed and the 
members thereof shall be appointed.  
4. Licensed Financial Institutions performing all or part of their business and activities 
according to the Rules of Islamic Sharia shall bear all expenses of the Authority 
aforementioned in Clause (1) of this Article, including allowances, remunerations and 
expenses of its members, as decided by the Board of Directors.  
5. The HSA shall develop the rules, standards and general principles applicable to licensed financial business and activities in compliance with the Rules of the Islamic Sharia. It 
shall cont rol and supervise internal Sharia audit committees of the Licensed Financial 
Institutions referred to in article (79) of this Decree -Law.  
6. The HSA shall approve Islamic monetary and financial instruments issued and developed by the Central Bank to manage monetary policy operations in the State. It shall express its opinion on regulatory bylaws and instructions regarding business of 
Licensed Financial Institutions that perform all or part of their business and activities in 
accordance with the Rules of t he Islamic Sharia.  
7. Islamic advisory opinions "Fatwa" and opinions of the HSA shall be binding on the 
internal Sharia audit committees, referred to in article (79) hereinafter, and to Licensed 
Financial Institutions performing all or part of their business and activities in accordance 
with the Rules of the Islamic Sharia.  
8. The HSA may seek the assistance of a specialized entity, if necessary, to conduct the 
external Sharia audit of the business of any Licensed Financial Institution performing all  
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 or part of their business and activities in accordance with the Rules of the Islamic Sharia 
and conditions and procedures set by the HSA at the expense of the relevant institution.

Article (18)  
Appointment of Senior Officials at the Central Bank  
The Board of Directors, upon nomination by the Governor, may appoint senior Central Bank 
Officials, with titles of deputy, assistant governors, or any other titles deemed appropriate by 
the Board of Directors. The decision whereby said deputies and assista nts are appointed 
shall determine their competences, salaries, and remunerations.

Article (19)  
Full- Time Employment at the Central Bank  
1. The Governor, his deputies and assistants shall work at the Central Bank on a full- time 
basis. None of them may hold any paid or unpaid position at, or be a member of the 
Board of Directors of, any of the Regulatory Authorities in the UAE, or in the Financial 
Free Zones; or be a member of the board of directors of any Licensed Financial 
Institution. They may not be a direct or indirect party to contractual obligations 
concluded by the public sector;  
2. The prohibition aforementioned in Clause (1) of this Article shall not apply to any tasks entrusted to any of the aforementioned officials by the Government in the Public Sector, 
including representation in international conferences, or representation of the Public 
Sector on the various committees. This shall be s ubject to the approval of the Board of 
Directors.

Article (20)  
Remunerations and Benefits  
The Board of Directors shall develop a system regarding remunerations, other benefits of the 
Governor and the remunerations of the Chairman and board members. A Federal Decree 
shall be issued in respect of the same.   
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Article (21)  
Board Meetings  
1. The Boa rd of Directors shall hold an ordinary meeting, at least once every sixty (60) days 
upon invitation by the Chairman.  
2. The Chairman of the Board may convene the Board whenever necessary.  
3. The Chairman of the Board shall convene the Board of Director s upon request of the 
board members of at least three (3).

Article (22)  
Quorum for Meetings  
1. The Meeting of the Board of Directors shall not be valid unless attended by at least five 
members including the Chairman, a deputy Chairman of the Board or the Governor.  
2. The Decisions of the Board of Directors shall be issued by the majority of attending votes 
and in the case of a tie, the Chairman of the Board shall have a casting vote.  
  
Section Three  
Powers of the Chairman of the Board and of the Governor

Article (23)  
Powers of the Chairman of the Board  
Without prejudice to the powers and competences of the Chairman of the Board of Directors, the Governor shall be the legal representative of the Central Bank and shall sign, 
on its behalf, all instruments, contracts and documents.

Article (24)  
Responsibi lities of the Governor  
Without prejudice to any competences vested in the Board of Directors or the Board 
Chairman, the Governor shall process all affairs of and manage the Central Bank, issue 
regulations, statutes and policies approved by the Board of Dir ectors and issue decisions 
necessary for the implementation thereof. The Governor shall be responsible for  
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 implementing this Decree -Law, the Central Bank's Statutes and the Board resolutions. He 
may delegate any of his powers and competences to any of his deputies, assistants or some 
senior officials of the Central Bank.  
  
Section Four  
Other Provisions

Article (25)  
Exemption from Liability  
1. The Central Bank, Board Member, m embers of committees formed by the Board of 
Directors, whether from among or from outside the Board of Directors, the staff of the 
Central Bank and its duly authorized representatives shall all be exempted from civil 
liability towards third parties in resp ect of the following:  
a. Performance, or failure to perform the tasks, powers, authorities and business of the Central Bank, or their own tasks, powers, and authorities, and all related practices;  
b. The instructions, guidelines, declarations, data, st atements and opinions given 
thereby in relation to performance of the Central Bank's tasks, powers, authorities and business, or their own tasks, powers, authorities and business.  
2. They shall be exempted from these liabilities unless bad faith with the intention to cause 
harm to third parties is proven. The  Central Bank shall bear all charges, costs, expenses, 
and attorney fees incurred in connection with defending the persons aforementioned in 
Clause (1) of this Article in lawsuits pertaining to performance of their duties at the 
Central Bank.

Article (26)  
Confidential Information  
1. The board members, members of committees formed by the Board of Directors, 
employees or representatives of the Central Bank, experts, technicians, and academic 
persons with whom the Central Bank deals may not disclose any of the information 
banned to be disclosed unless disclosure thereof is made pursuant to the provisions of  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 Clause (3) of this Article. This ban shall remain in effect until termination of m embership 
or service or end of the task;  
2. All and any information made available to any of the persons aforementioned in Clause 
(1) of this Article by virtue of their positions or in the course of performance of their duties shall be deemed confidential so long as they are not available to the public 
through formal or legal channels;  
3. Information banned to be disclosed may be disclosed whenever such disclosure is 
permitted or required by law, or whenever such disclosure is made to entities or 
author ities inside the UAE or in other jurisdictions pursuant to provisions of article (28) 
hereof.

Article (27)  
Declaration of Conflict of Interests  
1. Upon appointment thereof, and in case that any conflict of interests arises, board 
members shall declare their interests which may conflict with their membership of the 
Board of Directors. Should any board member have a personal interest in any 
transaction or contract whereto the Central Bank is party, such member shall declare 
such interest prior to discussing the issue, and shall withdraw from the meeting during 
which such transaction or contract is discussed. He may not participate in voting 
pertaining t hereto. This shall be made in accordance with the code of conduct and 
governance rules issued by the Board of Directors.  
2. Every employee or representative of the Central Bank shall disclose to his manager or his 
immediate superior any interest which may be in conflict with performance of his tasks. 
He may not participate in opinions expressed, decisions made or actions taken in this 
regard;  
3. The Board of Directors shall formulate the code of conduct for employees and representatives of the Central B ank, as well as procedures of disclosure, compliance, and 
governance.  
  
  
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Article (28)  
Cooperation with Local and International Authorities  
1. Within the scope of its jurisdiction, and in accordance with the Law, the Central Bank 
may cooperate with the regulatory authorities concerned in other countries and with 
international institutions by way of providing assistance and exchanging information,  
subject to the following:  
a. The request shall be based on the principle of reciprocity;  
b. The request may not be in contravention of any laws and regulations in force in UAE;  
c. The request shall be serious and important;  
d. The request may not be in conflict with the public interest and order public 
requirements.  
2. In coordination and collaboration with the regulatory authorities concerned, the Central 
Bank shall exercise its powers over Licensed Financial Institutions operating outside the 
UAE or in Financial Free Zones.

Article (29)  
Seeking Assistance of Experts, Technicians, and Academic Persons  
The Central Bank may seek assistance and define remuneration and allocations of experts, technicians, and academic persons. The Board of Directors may invite anyone to its meetings 
for consultation and opinion on certain issues, provided that such persons shall have no 
votes.

Article (30)  
Publishing Draft Rules and Regulations  
1. The Central Bank may publish the draft regulations and rules issued thereby in relation 
to the regulation of the business of Licensed Financial Institutions and Licensed Financial 
Activities in order to obtain opinion thereon by virtue of a public notice to the parties 
concerned.  
2. The Central Bank may invite the parties concerned to express their opinions on the draft  
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 rules and regulations aforementioned in Clause (1) of this Article, within the period 
specified by the Central Bank.  
3. The Central Bank may decide not to publish the draft regulations aforementioned in 
Clause (1) of this Article if it deems such publication shall conflict with the public interest, with realizat ion of the Central Bank's objectives or with implementation of its 
duties.  
 
Chapter Four  
Monetary Policy and Financial Stability

Article (31)  
Monetary Policy Objectives  
1. Monetary P olicy aims to maintain soundness and stability of the monetary system in the 
UAE to ensure maintenance of required stability and confidence in the national 
economy.  
2. The Central Bank shall determine monetary instruments and practical means for 
achievem ent of monetary policy objectives, including policies pertaining to management 
of the exchange rate of the national currency and pertaining to money markets in the 
UAE.  
3. Upon proposal of the Board of Directors and approval of the Cabinet, the Central B ank 
shall determine the exchange rate regime for the national currency.  
4. For operational purposes, the Central Bank may adopt measures necessary to manage 
and control the official exchange rate of the national currency as per the guidelines developed by the Board of Directors.

Article (32)  
Mandatory Reserve  
1. In line with the monetary policy objectives and the current and forecasted liquidity 
position, the Central Bank may determine to impose minimum Mandatory Reserve on 
each type of deposits or on total deposits held with Licensed Financial Institutions  
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 receiving deposits. The Board of Directors shall determine the method of calculating the 
percentage of the mandatory reserve, as dee med appropriate thereby.  
2. The Central Bank shall specify all operational arrangements concerning maintenance requirements of the Mandatory Reserve aforementioned in Clause (1) of this Article.

Article (33)  
Control of Credit Positions 
The Central Bank may develop and set regulations or rules specifying the maximum limits of credit transactions concluded between Licensed Financial Institutions and their customers 
as compared to their total stable resources or total deposits of their cust omers. Such limits 
may be applicable to a specific Licensed Financial Institution or to all Licensed Financial 
Institutions.

Article (34)  
Coordination between Monetary and Fiscal Policies  
The Central Bank and the Ministry shall formulate a mechanism for coordinating monetary and fiscal policies to achieve balanced growth in the national economy. Such coordination 
shall take place before the beginning of each fiscal year, and whenever necess ary. The 
coordination shall be made in respect of volume of government expenditure, debts of the government and governments of emirates members of the Federation, 
Government -Affiliated Entities, and companies and institutions owned or managed by the 
govern ment, or wherein the government holds shares, and coordination shall be made in 
respect of their plans regarding domestic and foreign public debt.

Article (35)  
Designation of Systemically Important Licensed Financial Institution (SIFI)  
The Central Bank s hall have the sole power to define any Licensed Financial Institution as 
systemically important. In this course, the Central Bank may require the designated Licensed 
Financial Institution to take required measures and procedures.   
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Article (36)  
Domestic Mark et Statistics  
1. The Public Sector and other agencies, deemed appropriate by the Board of Directors, 
shall provide the Central Bank with all the information and statistics required for the 
purpose of performing the tasks entrusted thereto pursuant to the  provisions of this 
Decree by Law. Such information and statistics shall include all monetary and economic statistics, as well as balance of payments statistics and consumer prices. The Central 
Bank may publish all or part of these statistics as deemed app ropriate.  
2. The Central Bank shall obtain the approval of other Regulatory Authorities in the UAE 
regarding accessibility to and/or publication of non -public information and statistics in 
relation to institutions regulated by of those authorities.

Article (37)  
Research  
1. The Central Bank may conduct research and analyses in areas of macro -economy, and 
management of monetary policy, and banking and financial operations of strategic 
importance to the UAE economy.  
2. The Central Bank shall regular ly publish and issue statistical reports, quarterly and 
annual reviews of the Central Bank briefs of policies and working papers that contain 
analyses of relevant data to verify soundness and effectiveness of policies decisions.  
  
Chapter Five  
Central Bank Operations  
Section One  
Operations with the Public Sector

Article (38)  
Advisor to the Government  
The Central Bank shall advise the Government on matters falling within its jurisdiction, and shall express its opinion on monetary, banking, and financial affairs whenever required by  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 the Government.

Article (39)  
Financial Agent for the Government  
1. The Central Bank shall take part in negotiations pertaining to the Government's 
international monetary and financial treaties. The Central Bank may be entrusted to 
implement the provisions of such treaties.  
2. The Central Bank may, directly or through Primary Dealers, sell and manage securities 
issued or secured by the Government or governments of emir ates members of the 
Federation pursuant to an agreement with the government concerned.

Article (40)  
Government Bank  
1. For the purposes of achieving objectives of its monetary policy, and to satisfy the needs of the Government and governments of emirates members of the Federation for national 
and/or foreign currencies, the Central Bank shall buy or sell foreign currencies from or to the government concerned and governments of emirates members of the Federation at 
prevailing exchange rates;  
2. The Central Bank shall conduct and provide banking transactions and services for the Government, whether inside the UAE or in other jurisdictions in return for fees. The 
Central Bank may also perform and provide banking transactions and services for govern ments of member emirates of the Federation in return for fees;  
3. The Government and governments of emirates members of the Federation shall open 
accounts in national and foreign currencies with the Central Bank, and shall make 
transfers through such accounts;  
4. Government funds in national or foreign currencies shall be deposited with the Central Bank, and the latter shall pay or charge interest thereon in view of the prevailing market 
rates. Governments of emirates members of the Federation may also deposit funds in 
national or foreign cu rrencies with the Central Bank, and the latter shall pay or charge  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 interest thereon in view of the prevailing market rates;  
5. Other Public Sector entities may deposit their funds in national or foreign currencies 
with the Central Bank. The Central Bank sh all pay or charge interest thereon as 
determined by the Central Bank;  
6. The Central Bank may grant advances or other credit facilities to the Government at 
interest rates to be set in accordance with the terms and conditions of the agreement to 
be execute d in this respect between the Central Bank and the Ministry, provided such 
advances and credit facilities are granted for the purpose of covering a temporary 
unforeseen deficit in Government revenues as compared to its expenditures. The 
Government may not re -grant such loans or advances to any other entity. Granted 
advances may at no time exceed ten percent (10%) of the government's average revenues realized in the budgets of the last three (3) years. The Government shall repay 
these advances within a perio d not exceeding one (1) year as of the date of being 
granted the same. In case of non -repayment of said advances on maturity date, the 
outstanding balance shall be subject to a late payment interest rate provided for in the 
agreement executed between the C entral Bank and the Ministry;  
7. The Central Bank may subscribe to securities and debt instruments issued by the 
Government for maturities exceeding one (1) year, only in the cases determined by the 
Board of Directors. The Government shall repay the amount s due including interests on 
maturity dates. In case of late or early payment, an interest rate shall be imposed, as 
provided for in the debt agreement.

Article (41)  
Investment and Use of Government Funds  
Except for the funds deposited with the Central B ank in accordance with provisions of 
article (40) of this Decree by Law, the Central Bank may not interfere in the investment and 
use of Government funds, or funds of governments of emirates members of Federation 
unless it has been entrusted to do so as pe r the agreement concluded by and between the 
government concerned and the Central Bank.  
   
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 Section Two  
Transactions with Financial Institutions, Monetary Authorities and other 
Central Banks

Article (42)  
Opening  Accounts  and  Keeping  Balances  of Digital  Curr ency  
First: The Central Bank may open the following accounts:  
1. National or foreign currencies accounts for Licensed Financial Institutions and may take 
deposits therefrom. The Central Bank may pay or charge interest on such deposits as 
agreed upon;  
2. Accounts for monetary authorities, other Central Banks, foreign banks, international fi-
nancial and monetary institutions, Or Arab and international monetary funds. The Cen-
tral Bank may pay or charge interest on such accounts, and may act as an agent or cor-
respondent for these entities.  
3. Accounts for monetary authorities, other Central Banks, foreign banks, international fi-
nancial and monetary institutions, as well as Arab and international monetary funds.  
4. The Central Bank may open any other accounts within the limits and subject to the rules 
and requirements issued by the Board of Directors.  
Second: The Central Bank may keep other forms of financial accounts of digital currency 
whatever its kind within the limits and subject to the rules and requirement s issued by the 
Board of Directors.

Article (43)  
Money and Capital Markets Transactions 
The Central Bank may conduct the following money and capital markets transactions:  
1. Purchase, re -purchase, sell, and accept deposits of gold bullion or coins and precious 
metals;  
2. Accept and take monetary deposits and pay or charge interest thereon pursuant to the 
provisions of article (62) of this Decree by Law;  
3. Issue bills payable on demand and other types of payable financial transfers at the  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 Central Bank headquarters, branches, or offices of agents or correspondents thereof;  
4. Conduct all foreign currency transactions and external transfers with the Governme nt, 
governments of emirates members of the Federation, public entities, local and foreign 
banks, licensed money exchange houses, other monetary authorities and Central Banks, as well as other Arab and international financial institutions and funds;  
5. Issue securities in the name of the Central Bank, and sell, re -purchase, discount, 
rediscount, and redeem such securities for the purposes of monetary policy transactions management;  
6. Purchase, re -purchase, sell, discount and rediscount Eligible Securities and other 
securities related to the management of its own funds and/or Foreign -Exchange 
Reserves pursuant to the adopted terms and conditions;  
7. Purchase, re -purchase, and sell commodities and securities compliant with Sharia 
provisions in order to d evelop liquidity management instruments for Licensed Islamic 
Financial Institutions;  
8. Grant collateralized loans, advances, other credit facilities, and financing facilities 
compliant with the provisions of Islamic Sharia to Licensed Financial Institutions for the purpose of managing monetary policy transactions in accordance with the terms and 
conditions set from time to time and deemed appropriate by the  Central Bank;  
9. Grant collateralized loans and advances to monetary authorities, Central Banks, foreign 
banks, and international financial institutions, and may obtain loans and advances 
therefrom, provided that such transactions be consistent with the  Central Bank's 
functions and competencies. Interests or commissions may be paid or charged for this 
purpose;  
10. Obtain, guarantee or secure loans and advances, or grant credits in any currency, inside the UAE or in other jurisdictions, in accordance w ith the terms and conditions the 
Central Bank deems appropriate for conducting its own business;  
11. Conduct all other transactions which would help achieve the Central Bank's objectives.  
  
 
  
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Article (44)  
Protection of Licensed Financial Institutions  
The Central Bank shall take all necessary measures it deems appropriate to ensure proper 
functioning of Licensed Financial Institutions according to frameworks and limits set by the 
Board of Directors.  
To that end, the Central Bank may:  
a. Call for the g eneral meeting of the Licensed Financial Institution to discuss any issue the 
Central Bank deems important;  
b. Request that any item the Central Bank deems required be listed on the agenda of the 
general meeting of the Licensed Financial Institution; and  
c. Suspend the implementation of any decision issued by the general meeting of the 
Licensed Financial Institution if it violates laws and regulations in force.  
2. The Central Bank may, at its sole discretion in urgent cases where the Licensed Financial 
Institution that receive deposits undergoes liquidity pressures or is under crisis management 
procedures, provide loans to such institutions to contribute to the enhancement and 
protection of the financial system and the protection of the monetary system in the State.

Article (45)  
Appointment of Primary Dealers  
1. The Central Bank shall set the rules regulating securities issued thereby or by the 
Governmen t in coordination with various stakeholders. Such rules shall include 
issuance, custody, trading of these securities in the UAE.  
2. The Central Bank may appoint Primary Dealers for securities issued inside the State 
whether by the Central Bank or by the Public Sector in accordance with the terms and 
conditions set by the Central Bank.  
3. For the purpose of listing securities issued by the Public Sector in the State's stock markets, the Central Bank shall appoint Primary Dealers approved thereby who satisfy 
the requirements of the regulatory authority concerned.  
   
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 Section Three  
Investment of Foreign -Exchange Reserves and the Central Bank's Own 
Funds

Article (46)  
Foreign -Exchange Reserves  
In accordance with the instructions and rules stipulated in the inve stment policy and the 
guidelines approved by the Board of Directors, The Central Bank may invest the 
Foreign -Exchange Reserves in all or any of the following instruments:  
1. Gold bullions, gold coins and other precious metals;  
2. Paper notes and coins, call money, and deposits in foreign countries;  
3. Securities issued or secured by governments of foreign countries and relevant bodies, or by international monetary and financial institutions.  
4. Financial derivatives and other f inancial instruments required for the management of 
Central Bank's exposure to interest rates, exchange rates, credit, gold, and other precious metals rates;  
5. Any other financial assets the Central Bank deems appropriate to invest therein as 
Foreign -Exchange Reserves, subject to approval of Board of Directors.

Article (47) 
Own Funds  
In accordance with the investment policy and guidelines set by the Board of Directors, the 
Central Bank may use or invest part of its Own Funds in the following manner:  
1. Purchase and sell securities, and subscribe to loans issued or secured by the Public 
Sector, or buy shares in any entity wherein the Government or governments of emirates 
members of the Federation hold shares or is granted a privilege in the State;  
2. Invest in investment projects and funds and financial institutions not licensed by the 
Central Bank; and  
3. Possess real estate properties, equity and movable properties and all relevant issues.  
   
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Article (48)  
Appointment of External Parties to Manage Foreign -Exchange Reserves and 
the Central Bank's Own Funds  
The Central Bank may appoint external parties to manage its Foreign Reserves and Funds in 
accordance with the investment policy and guidelines set by the Bo ard of Directors.  
 
Chapter Six 
Miscellaneous Provisions

Article (49)  
Establishment of Commercial or Financial Companies and Institutions  
In the course of achievement of its objectives and performance of its tasks provided for in 
article (4) herein, the Cen tral Bank may establish commercial and financial companies and 
institutions, or companies or institutions established for any specific purpose, either solely 
or in partnership with any other entities inside the State or in other jurisdictions. It may 
perform any commercial activity or own moveable and immoveable assets as per the 
controls issued by the Board of Directors.

Article (50)  
Lien and Security for Special Rights  
1. Debts of the Central Bank shall have the same lien of the Government debts over funds of its debtors. The Central Bank's debts shall be collected in the same method and by the 
same means prescribed for the collection of the Government debts and funds.  
2. Except for the Mandatory Reserve aforementioned in article (32) hereof, the Cen tral 
Bank shall have a lien over the property of Licensed Financial Institutions for the 
payment of all its claims and dues of cash balances or assets which constitute collaterals 
for these claims and dues when falling due.  
3. The Central Bank may purchase or own, by amicable agreement or by means of 
compulsory sale, real properties and movable assets to satisfy any of its debts. Such 
property shall be sold within the shortest possible time, unless the Central Bank decides  
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 to use them to conduct its business pursuant to the provisions this Decree -Law.  
4. The Central Bank shall obtain adequate collaterals for satisfying its rights, including 
pledge, mortgage or assignment.  
5. If the Central Bank's secured rights are not fulfilled on the maturity date thereof, the 
Central Bank may, following the lapse of (10) ten days of the date on which the debtor is 
duly notified, proceed with the sale of the pledged assets, without prejudice to the 
Central Bank's right to initiate other legal proceedings against the debtor until its secured rights are fully fulfilled.  
6. Pledged property shall be sold, pursuant to Clause (5) of this Article, by the competent court at the request of the Central Bank.  
7. The Central Bank shall collect its d ues from proceeds of the sale to be carried out 
pursuant to the provisions of Clause (6) of this Article. Should such proceeds exceed the 
amounts due to the Central Bank, the surplus shall be deposited in the Central Bank at 
the debtor's disposal without p aying any interests.

Article (51)  
Financial Exemptions  
1. The Central Bank shall be exempted from the following:  
a. Taxes, fees, and payments relevant to the capital, reserves, Currency issue, or income thereof;  
b. Taxes, fees, and payments relevant to contributions, shares, or profits generated from companies and institutions wherein the Central Bank owns a share of its capital.  
2. The Central Bank, the companies and institutions wherein it holds the majority of s hares 
shall be exempted from bail bonds and court fees required by law.

Article (52)  
Guardianship of Premises and Safe Transport of Funds and Assets  
The Government shall provide security guards for the Central Bank to secure its premises, as 
well as the security escort needed for the safe transport of funds and valuables free of 
charge.   
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Article (53)  
Dissolution of the Central Bank  
The Central Bank may be dissolved only by virtue of a law specifying the manner and timing 
of liquidation thereof.  
 
Part Two  
Currency  
Chapter One  
Currency Unit and Issuance

Article (54)  
Currency Unit  
The official Currency of the UAE is "Dirham" and s hall be referred as (? ? ?) in Arabic 
alphabets and as (AED) in Latin alphabets. Dirham is subdivided into one hundred (100) fills.

Article (55)  
Currency  Issuance  
1. Issuance of Currency shall be a privilege granted exclusively to the State which shall be  
exercised solely and exclusively by the Central Bank.  
2. No Person is allowed to issue or put into circulation paper banknotes, coins, or any in-
strument or cheques payable to bearer on demand which have the appearance of, or 
purporting or are likely to  be confused with the currency, and may be circulated in the 
UAE or in any other country as a currency.

Article (56)  
Currency  Legal  Tender  
1. Paper banknotes and digital currency issued by the Central Bank shall be an absolute 
legal tender valid for paym ent of any amount up to their full face value.   
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 2. Coins issued by the Central Bank shall be legal tender valid inside the UAE for payment 
of any amount up to its full face value but not exceeding fifty (50) Dirhams. Neverthe-
less, should such coins be prese nted to the Central Bank, the latter shall accept them 
without any limitation to their value.

Article (57)  
Specifications,  Features  and  Denominations  of Currency  
1. Paper banknotes issued by the Central Bank sh all be of such denominations, designs, 
and specifications as well as features decided by the Board of Directors. Paper banknotes 
shall bear the signature of the Chairman of the Board.  
2. The Board of Directors shall determine the weights, compositions, mix ratios, allowed 
variation, and all other specifications of coins as well as the quantities required to be 
minted of each denomination.  
3. The Central Bank shall take the necessary proced ures for printing paper banknotes 
aforementioned in Clause (1) of this Article, and minting coins aforementioned in Clause 
(2) of this Article, in addition to all matters pertaining to such printing, minting and safe-
keeping of such paper banknotes and coin s as well as relevant printing plates and coin 
dies.  
4. The Central Bank shall issue the forms, specifications and designs of digital currency, re-
quirements and conditions of possession and all other features decided by the Board of 
Directors.  
5. The Centr al Bank shall publish resolutions whereunder Currency is issued pursuant to 
the specifications, designs and all other features in the Official Gazette.

Article (58)  
Gold, Silver and Commemorative Coins  
1. The Board of Directors shall set up the conditio ns for sale and purchaser of gold and 
silver coins with the Central Bank.  
2. The Central Bank may issue commemorative banknote or coins for any party desiring for 
the same, as per the rules and conditions set by the Board of Directors.   
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 3. The Board of Directors shall determine the specifications, fineness, weights, 
measurements, allowed variation and all other specifications of gold and silver coins, as 
well as quantities required to be minted for each denomination.  
4. The Central Bank shall take necessary actions for minting gold and silver coins 
aforementioned herein, as well as all other matters related to minting and safekeeping 
these coins and the relative parts, plates and dies.  
 
Chapter Two  
Circulation and Withdra wal of Currency

Article (59)  
Paper Banknotes  
1. New paper banknotes shall be put into circulation by virtue of a resolution by the Board 
of Directors specifying denominations and quantities thereof. Such resolution shall be 
published in the Official Gaze tte and shall be communicated to the public via 
appropriate media.  
2. The Board of Directors may, after approval of the Cabinet, withdraw from circulation any 
denomination of paper banknotes against payment of their face value. A resolution to 
this effec t shall be published in the Official Gazette and shall be communicated to the 
public through appropriate media.  
3. Paper banknotes withdrawal resolution shall specify the grace period within which 
exchange is allowed, provided that said period may not be  less than three (3) months 
starting as of the date of publication of the resolution in the Official Gazette. Said grace 
period may be shortened to fifteen (15) days, if necessary.  
4. Paper banknotes not presented for exchange prior to expir y of the grace period set forth 
in Clause (3) of this Article shall cease to be legal tender and may not be used for 
transactions. However, holders of such paper banknotes shall have the right to redeem 
them at their face value from the Central Bank within  ten (10) years from the effective 
date of the withdrawal resolution. Paper banknotes not exchanged upon passage of said 
ten-year period must be taken out of circulation and their value shall be credited to 
Central Bank account.   
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 5. Paper banknotes withdr awn from circulation pursuant to the provisions of Clause (4) of 
this Article shall be destroyed by the Central Bank in accordance with the instructions 
issued by the Central Bank in this respect.  
6. The Central Bank shall be under no obligation to refun d the value of any lost or stolen 
paper banknotes, and shall not accept or redeem the value of counterfeit paper 
banknotes.  
7. The Central Bank shall pay value of torn, mutilated or imperfect paper banknotes 
satisfying the conditions of the Central Bank in this regard. Paper banknotes not 
satisfying those conditions shall be withdrawn from circulation without any 
compensation to bearers thereof.

Article (60)  
Metal Coins  
1. Metal coins of various denominations shall be put into circulation by virtue of a resolution by the Board of Directors specifying the quantities thereof. This resolution 
shall be published in the Official Gazette and shall be communicated to the public 
through appropriate media.  
2. Any denomination of the metal coins  aforementioned in Clause (1) of this Article may be 
withdrawn by virtue of a resolution by the Board of Directors and exchanged for payment of their face value. This resolution shall be published in the Official Gazette and 
shall be communicated to the pu blic through appropriate media.  
3. The withdrawal resolution shall specify grace period for exchanging withdrawn coins. Said period may not be less than six (6) months from the date of publication of the 
resolution to this effect in the Official Gazette.  
4. Metal coins not exchanged prior to expiry of the period aforementioned in Clause (3) of 
this Article shall cease to be legal tender and may not be used for transactions. They shall 
be taken out of circulation and their value shall be credited to the Central Bank account.  
5. Should metal coins lose their features, become mutilated, diminished or changed in 
shape for any reason other than normal use, the Central Bank shall withdraw such coins from circulation without compensating holders thereof.   
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 Arti cle (60) bis 
Digital  Currency  
1. Board of Directors shall issue a resolution to introduce national digital currency into 
trading and to withdraw the same when its face value is paid. Such resolution shall be 
published in the Official Gazette and shall be announced to the public in appropr iate me-
dia. 
2. The Bank shall not be responsible to refund the value of any digital currency that is miss-
ing, stolen or manipulated. The Bank shall not accept any counterfeit currency or pay its 
consideration.

Article (61)  
Currency Mutilation, Des truction and Shredding  
No Person is permitted to mutilate, destroy or shred Currency in whichever manner. The 
Board of Directors shall issue regulations on replacement of mutilated, destroyed or 
shredded Currency.  
 
Chapter Three  
Monetary Base

Article (62)  
Monetary  Base  Cover  
The Central Bank shall, at all times, hold reserves of foreign assets to cover the Monetary 
Base pursuant to the provisions of article (63) of this Decree -Law and such reserves of for-
eign assets shall consist of one or more of the follo wing:  
1. Gold bullions and other precious metals;  
2. Cash assets and deposits, and other monetary and payment instruments denominated in 
foreign currencies that are freely convertible in global financial markets, including digital 
currencies issued by the Central Banks and other monetary authorities.  
3. Securities denominated in foreign currencies issued or guaranteed by foreign govern-
ments and the companies, entities, institutions, and agencies affiliated thereto, or by in- 
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 ternational monetary and financial institutions, or by multinational corporations, pro-
vided said securities be tradable in global financial markets.

Article (63)  
Foreign -Exchange Reserves for the Monetary Base Cover  
1. The market value of the Foreign -Exchange Reserves balance aforementioned in Article 
(62) of this Decree by Law shall not,  at any time, be less than seventy percent (70%) of 
the value of the Monetary Base.  
2. The Board of Directors may reduce the Monetary Base Cover percentage 
aforementioned in Clause (1) of this Article for a period not exceeding twelve (12) 
months.  
 
Part Three  
Regulation of Licensed Financial Institutions and Activities  
Chapter One  
General Provisions

Article (64)  
Prohibition of Performing or Promoting Financial Activities without a 
License  
1. Licensed Financial Activities m ay be carried on inside or from within the UAE only 
pursuant to the provisions of this Decree by Law, the regulations and resolutions issued in implementation thereof.  
2. Promotion of any of the Licensed Financial Activities and financial products may be  
performed inside or from within the UAE only pursuant to the provisions of this Decree 
by Law, the regulations and resolutions issued in implementation thereof. The 
promotion referred to in this item shall mean any form of communication, by any 
means, wit h the intention to call for or to offer entry into any transaction, or an offer to 
conclude any agreement concerning any of the Licensed Financial Activities.  
3. The Board of Directors may issue the regulations, rules, standards and directives  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 prohibitin g performance of any of the Licensed Financial Activities without prior 
licensing, and prohibiting promotion of Licensed Financial Activities and financial 
products. The Board of Directors may take all necessary measures and actions in this 
regard.  
4. The Board of Directors may exempt any activities, practices, or natural or legal persons, 
either in general or in particular, from said prohibition to perform or promote Licensed 
Financial Activities.  
  
Chapter Two  
Licensing  
Section One  
Financial Activities Subject to Licensing

Article (65)  
Financial Activities  
1. The following activities shall be considered financial activities subject to Central Bank 
licensing and supervision pursuant to the provisions of this Decree by Law:  
a. Taking deposits of all types, including deposits compliant with the provisions of 
Islamic Sharia;  
b. Providing credit facilities of all types,  
c. Providing financing facilities of all types, including financing facilities compliant with 
the provisions of Islamic Sharia;  
d. Providing currency exchange and money transfer services;  
e. Providing monetary intermediation services;  
f. Providing stored values, electronic retail payments and digital money services;  
g. Providing virtual banking services.  
h. Arranging for and/or marketing Licensed Financial Activities;  
i. Acting as a principal in financial products affecting the financial position of the 
Licensed Financial Institution including, but not limited to, foreign exchange, 
financial derivatives, bo nds and Islamic financial certificates "Sukuk", ownership of  
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 equities, commodities, and any other financial products approved by the Central 
Bank.  
2. The Board of Directors may:  
a. Classify and define Licensed Financial Activities and the practices relating thereto.  
b. Add, remove, or modify activities or practices to the list of Licensed Financial 
Activities aforementioned in Clause (1) of this Article, following coordination and 
agreement with the Regulatory Authorities in the State. Same shall be m ade via the 
Financial Activities Committee referred to hereinafter in article (66) of this Decree by 
Law.  
3. In case a Licensed Financial Institution desires to perform financial activities other than 
the activities aforementioned in Clause (1) of this A rticle but are licensed by the 
Regulatory Authorities inside the State or by regulatory authorities in other jurisdictions. 
Such institution shall obtain approval of the Central Bank prior to obtaining the license 
from the regulatory authority concerned.

Article (66)  
Financial Activities Committee  
1. The Ministry shall form a technical committee cited as 'Financial Activities Committee' 
by virtue of a Cabinet resolution. The Committee shall be chaired by the Minister and 
shall comprise a representative of each of the Regulatory Authority in the State. The 
Committee shall express opinion on any proposal to regulate any financial activity other than those provided for in the laws of regulatory authorities in the UAE. The Cabinet 
resolution shall specify th e Committee's terms of reference and the mechanism for 
discharge of its functions.  
2. In case that the Financial Activities Committee proposes addition of a certain financial 
activity not included in the laws of the regulatory authority concerned to the list of 
activities licensed and controlled thereby, approval of the regulatory authority 
concerned shall be obtained.  
  
  
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 Section Two  
Licensing Financial Institutions

Article (67)  
License Applications  
1. Any Person may submit to the Central Bank a license application to perform one or more 
of Licensed Financial Activities, or to add one or more Licensed Financial Activities to an 
issued license in accordance with the regulations issued by the Board of Dire ctors;  
2. The Board of Directors shall issue regulations, rules and standards, and shall set 
conditions for licensing performance of Financial Activities, including the following:  
a. Fit and proper criteria;  
b. Resources necessary for performance of the activity;  
c. Controls and supervision systems;  
3. The Board of Directors may, at its own discretion and as it deems appropriate for 
safeguarding public interest, add any requirements or conditions to be fulfilled by the 
license applicant.

Article (68)  
Compliance with the Scope of the License  
1. A Licensed Financial Institution shall carry on its business within the scope of the license granted thereto.  
2. No person may introduce himself as a Licensed Financial Institution unless it is an already Licensed Financial Institution.

Article (69)  
Deciding on the Application for License or Expansion of its Scope 
1. The application for license or expansion of its scope shall be decided on within a period not exceeding sixty (60) working days from the date of satisfying the requirements and 
conditions of the license. The lapse of such period without reply shall be deemed 
rejection of the application.   
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 2. The Central Bank may request the applicant to meet the requirements and conditions of 
the license within the period it determines.  
3. The Central Bank may reject the application or request the addition of any financial activity at its sole discretion, according to the absorptive capacity of the financial sector of the State and the requirements of the domestic market. The decision issued in this 
regard shall be final and not appealable before the Grievances and Appeals Committee.  
4. The applicant shall be notified of the substantiated rejection decision by means of an 
official notice within a period not exceeding twenty (20) days from the date of its 
issuance.

Article (70)  
Imposing Conditions and Restrictions on a License  
1. The Board of Directors may decide to impose, change, or cancel the conditions and 
restrictions on the license of performing Licensed Financial Activities.  
2. Prior to issuing its decision aforementioned in Clause (1) of this Article, the Board of Directors may request the financial institution concerned to provide its notes on the 
reasons of the decision within the period specified by the Board of Directors.  
3. The Licensed Financial Institution shall be notified of the reasoned decision by virtue of 
an official notice to be sent within no more than twenty (20) work days as of the date of 
issuing said decision. The notice shall include the following:  
a. Content s of the decision;  
b. Reasons entailing the decision;  
c. Advising the Licensed Financial Institution of its right to file a grievance against the 
decision before Grievances and Appeals Committee in accordance with the 
provisions of this Decree by Law.

Article (71)  
Suspension, Withdrawal, or Revocation of License  
1. The Board of Directors may suspend, withdraw, or revoke a license granted to a Licensed Financial Institution in the following cases:   
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 a. If the Licensed F inancial Institution fails to meet, or is in breach of one or more of the 
conditions or restrictions imposed on the license granted thereto;  
b. If the Licensed Financial Institution breaches any of the laws and statutes in force in 
the UAE, or any of the  regulations, rules, standards, instructions, and guidelines 
issued by the Central Bank;  
c. If the Licensed Financial Institution fails to take any measures or actions determined 
or developed by the Central Bank;  
d. If the Licensed Financial Institutio n ceases to perform one or more of the Licensed 
Financial Activities for a period exceeding one year;  
e. If the business or activities are suspended for a period exceeding one year;  
f. If the Central Bank deems, at its own discretion, that full or partial withdrawal, 
revocation, or suspension of the license would be necessary for achieving the 
objectives and discharging functions thereof;  
4. If the Licensed Financial Institution concer ned submits an application for total or 
partial suspension or revocation of the license;  
h. If the Licensed Financial Institution's liquidity or solvency is exposed to risk;  
i. If the capital of the Licensed Financial Institution decreases the minimum capital required in accordance with the provisions of this Decree by Law, or the regulations, 
rules, or standards issued by the Central Bank.  
j. If the Licensed Financial Institut ion is merged into another financial institution;  
k. If the Licensed Financial Institution is declared bankrupt;  
l. If the Licensed Financial Institution's officers, employees, or representativ es refrain 
from cooperating with Central Bank's officers, representatives, or inspectors, or from 
providing required information, statements, documents, or records;  
m. If the license of a foreign Licensed Financial Institution is revoked, or if the same is 
put under liquidation at the country wherein the headquarters is located, or if the 
businesses of branch, companies or Representative Offices thereof in the UAE is 
terminated;  
2. The Licensed Financial Institution shall be notified of the reasoned wit hdrawal, 
revocation or suspension decision by virtue of an official notice to be sent within no  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
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 more than twenty (20) work days as of the date of making said decision. The notice shall 
include the following:  
a. Contents of the decision;  
b. Reasons enta iling the decision;  
c. Date of entry of the decision into force;  
d. Advising the Licensed Financial Institution concerned of its right to file a grie vance 
against the decision before Grievances and Appeals Committee in accordance with 
the provisions of this Decree by Law.  
3. After the Grievances and Appeals Committee decides on any grievance or appeal, if any, 
or upon lapse of the grace period provid ed for under Clause (2) of this Article, the 
decision made by the Central Bank shall be published in two local daily newspapers including one published in Arabic and the other to be published in English. The decision 
shall be posted on the official website  of the Central Bank and may be announced by any 
other means if necessary.

Article (72)  
Use of the Terms “Bank ” or “Masraf  
1. The expressions "Bank" and "Masraf" or any other expression derived therefrom or 
similar thereto in any language may not be us ed by entities other than Banks licensed in 
accordance with the provisions of this Decree by Law in their business names, 
advertisements, or in any manner which would mislead the public as to the nature of their businesses;  
2. The following entities shall be excluded from to the provisions of Clause (1) of this 
Article:  
a. Foreign Monetary Authorities and Central Banks;  
b. Any federation or association established for protection of Banks' interests; and  
c. Any other institut ion exempted by the Board of Director.  
  
 
  
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Article (73)  
Entry on the Register  
1. The Central Bank shall create an electronic register called "Register of Licensed Financial 
Institutions" whereon financial institutions licensed by the Central Banks shall be 
entered. The register shall include all data pertaining to these institutions and all 
modifications thereof. Rules and requirements for entry on said register shall be set by 
virtue of a resolution by the Board of Directors. The resolution licensing the se 
institutions along with any amendments thereto shall be published in the Official Gazette. This Register shall be published in the official website of the Central Bank.  
2. A Licensed Financial Institution may not commence any Licensed Financial Activity 
unless it is entered on the register.  
3. Fees of licensing and entry on the register shall be deposited in a special account with 
the Central Bank. The Board of Directors shall make a resolutio n organizing the 
operation of the account, and setting the rules for withdrawing funds therefrom.

Article (74)  
Legal Form 
1. Banks shall have the form of public joint -stock companies, as authorized by the law or 
decree establishing them, with the excep tion of branches of foreign banks operating in 
the State and specialized banks with low risks determined in accordance with the conditions and rules set by the Board of Directors.  
2. Other Financial Institutions may have the form of joint -stock companies or limited 
liability companies, in accordance with the conditions and rules issued by the Board of 
Directors.  
3. Exchange Houses and  financial intermediaries may be sole proprietorships or have any 
other legal form, in accordance with the conditions and rules issued by the Board of Directors.  
  
  
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Article (75)  
Minimum Capital Requirements  
The Board of Directors shall formulate regulations concerning the minimum capital 
requirement for Licensed Financial Institutions, and conditions and instances of capital 
increase or reduction. The regulations shall provide for the risk -based capital requirements, 
and the necessary actions to be taken in  case of capital shortfall, in addition to the measures 
taken by the Central Bank in this regard.

Article (76)  
Shareholding and Ownership in Licensed Financial Institutions  
1. Without prejudice to the financial and commercial activities restricted to U AE nationals 
prescribed in any other law, the Board of Directors shall determine the conditions and 
controls for holding shares in Banks incorporated in the UAE and their capital contributions therein. In all cases national shareholding in banks may not be  less than 
sixty percent (60%).  
2. The BOB may specify the conditions and controls concerning percentage of citizens' and 
foreigners' ownership of shares and capital contributions in Other Financial Institutions 
incorporated in the UAE.

Article (77)  
Amendment of the Memorandum and Articles of Association  
1. Licensed Financial Institutions shall seek Central Bank's approval of the amendments 
made to their memorandum or articles of association. Such amendments shall only take 
effect after entry thereo f on the register.  
2. The Central Bank shall decide on the application, and in case of rejection of entry 
thereof, the matter shall be presented to the Board of Directors who shall make a final 
decision thereon.  
  
  
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 Section Three  
Provisions for Licensed Islamic Financial Institutions

Article (78)  
Scope of Activity  
1. Licensed Financial Institutions performing all or part of their activities and carrying on 
their businesses in accordance with the provisions of Islamic Sharia may p erform the 
Licensed Financial Activities mentioned hereinabove in article (65), whether for their 
own account or for the account of or in partnership with third parties, provided such activities and businesses are compliant with provisions of Islamic Sharia. The Board of 
Directors shall develop regulations specifying the activities, conditions, rules, and 
standards of operation of these institutions in line with the nature of the license granted 
thereto.  
2. Licensed Financial Institutions aforementioned i n Clause (1) of this Article, in respect of 
their businesses and activities compliant with provisions of Islamic Sharia which are 
performed for the interest of their customers rather than their own interest, shall be 
exempted from:  
a. Provisions of Claus e (1) of article (93) of this Decree by Law;  
b. Provisions of Clause (2) of article (93) of this Decree by Law, provided that such 
exemption does not contradict the provisions of local statutes in force in the relevant 
emirate member of the Federation.

Article (79)  
Internal Sharia Audit  
1. Every Licensed Financial Institution performing all or part of its activities and carrying on its businesses in accordance with the provisions of Islamic Sharia shall form an 
independent internal audit committee called "Internal Sharia Audit Committee" 
comprising experts and specialists of Islamic financial and banking transactions. Said 
committee shall provide Sharia supervision over and approval of all businesses, 
activitie s, products, services, contracts, documents and covenants of the institution  
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 concerned. The committee shall formulate necessary Sharia controls within the 
framework of rules, principles and standards set and formulated by the HSA to ensure 
their compliance  with Islamic Sharia provisions. Consultations and opinions of said 
committee shall be binding.  
2. Internal Sharia Audit Committee shall be formed by the general meeting of the Licensed 
Financial Institution concerned in accordance with the provisions of  Commercial 
Companies Law mentioned hereinabove. Names of nominated members of the Internal 
Sharia Audit Committee shall be presented to the HSA for approval prior to presentation 
of the same to the General Meeting and making a decision approving their app ointment.  
3. Members of the Internal Sharia Audit Committee are not permitted to occupy any 
executive position in the institution aforementioned in Clause (1) of this Article, or to 
conduct any businesses falling outside the scope of work of the Committe e. They may 
not be shareholders in said institution, and neither they nor any of their first -degree 
relatives may have any interest therein.  
4. In case that any disagreements about any legal issue arise among the members of 
Internal Sharia Audit Committe e or between the Internal Sharia Audit Committee and 
the board of directors of the institution concerned, the matter shall be referred to the 
HSA which opinion thereon shall be final.  
5. Every institution provided for in Clause (1) of this Article shall establish an internal 
department or division, commensurate with the size of businesses and activities of the 
institution concerned. Said department or division shall be responsible for Internal 
Sharia Audit and for monitoring the compliance of the institut ion concerned with the 
legal consultations "Fatwa" and opinions of the Internal Sharia Audit Committee. This 
department or division shall report to the board of directors of the institution concerned. 
Their staff may not have any powers or executive respon sibilities towards the 
businesses, activities and contracts which they review or audit from Sharia perspective. 
Said department or division shall be chaired by a Sharia Auditor to be appointed by the 
board of directors of the institution concerned.  
  
  
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Article (80)  
Internal Sharia Audit Committee's Report  
1. Internal Sharia Audit Committee shall prepare an annual report to be presented at the 
general meeting of the Licensed Financial Institution performing all or part of its 
activities and businesses in accordance with Islamic Sharia. The report shall be prepared 
using the form prepared by the HSA, and shall indicate the extent of compliance of 
management of the institution concerned with the provisions of Islamic Sharia in terms 
of all its activities, businesses, offered products, contracts concluded thereby, and 
documentation used. Said report shall include the following:  
b. A statement on the extent of independence of the Internal Sharia Audit Committee in 
discharge of its function;  
b. A statement  on compliance of policies, accounting standards, financial products and 
services, operations and activities in general, together with the memorandum, 
articles of association, and financial statements of the relevant institution with the 
provisions of Isla mic Sharia throughout the last fiscal year;  
c. A statement on the compliance of distribution of profits, bearing of losses, costs, and 
expenses among and by shareholders and investment account holders with the 
Fatwas and opinions of the Internal Sharia A udit Committee; and  
d. A statement on any other breaches to provisions of Islamic Sharia and to the controls 
established by the HSA.  
2. Internal Sharia Audit Committee shall submit its report to the HSA within no more than 
two (2) months as of the end of the fiscal year in order for the HSA to express its opinion 
thereon prior to holding the general meeting of the institution concerned.

Article (81)  
Supervision by the State Audit Institution (SAI)  
In case that a Licensed Financial Institution performing all or part of its businesses and 
activities in accordance with Islamic Sharia is supervised by the State Audit Institution 
pursuant to t he Re -organization of the State Audit Institution law aforementioned, the SAI 
responsibilities shall be confined to post -auditing, and shall not interfere in the conduct of  
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 business or in the policies of these institutions.

Article (82)  
Contravention of Islamic Sharia Provisions  
Whenever it is established that a financial institution performing all or part of its businesses 
and activities in accordance with the provisions of Islamic Sharia does not comply with such 
provisions, as per Fatwas and opinions o f the Internal Sharia Committee, and Fatwas and 
opinions of the HSA, the Central Bank shall inform the institution concerned accordingly 
after consulting with the HSA, and shall request the institution to adjust its status under 
supervision of the Internal Sharia Audit Committee within thirty (30) business days as of the 
date on which it is notified of the same. The Central Bank shall adopt the appropriate corrective measures and actions in case of failure of the institution concerned adjust its 
status.  
 
Section Four  
Provisions on Undertaking Designated Tasks Entailing the Central Bank 
Authorization

Article (83)  
Designated Tasks  
1. The Board of Directors may issue regulations, rules, standards, conditions, and 
instructions specifying Designated Tasks sub ject to Central Bank authorization, and 
concerning the individuals who shall be required to obtain Central Bank authorization to undertake said tasks including requirements of fitness and properness, and requirements for exemption from certain standards or  requirements;  
2. Without prejudice to the provisions of Clause (1) of this Article, Designated Tasks subject 
to Central Bank authorization shall include such functions carried out by board 
members, chief executive officers, senior managers, executives, and Authorized 
Individuals of Licensed Financial Institutions;  
3. No one may undertake any of the Designated Tasks at a Licensed Financial Institution  
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 unless the Central Bank's prior authorization is obtained;  
4. Licensed Financial Institutions shall adopt and take all measures and actions to ensure 
that no officer, employee, or any other individual representing them shall undertake any 
of the Designated Tasks without prior authorization of the Central Bank;  
5. Any person authorized pursuant to the provisions of this Article shall abide by limits of 
powers vested therein under the authorization; and  
6. No person shall introduce itself as an Authorized Peron unless he is so authorized by the 
Central Bank.

Article (84)  
Application for Authorization to Undertake Designated Tasks  
1. A Licensed Financial Institution may submit an application to the Central Bank for 
authorization of any individual to undertake any of the Designated Tasks or to 
undertake additional Designated Tasks.  
2. The Central Bank may require the applicant to provide all necessary information enabling it to decide on the application.  
3. A Licensed Financial Institution shall notify the Central Bank of any material changes 
concerning the requirement for granting authorization to undertake the Designated 
Tasks.

Article (85)  
Deciding on of Application for Authorization to Undertake Designa ted 
Tasks or to add others 
1. Application for authorization or extension of the scope of authorization shall be decided 
on within no more than twenty (20) business days as of the date of meeting all 
conditions and requirements for authorization. Lapse of  said period without making a 
decision on the application shall be considered an implicit rejection thereof.  
2. The Board of Directors may reject an application for authorization or for addition of 
other Designated Tasks to an Authorized Person if the Bo ard of Directors deems that  
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 rejection thereof would serve public interest, or that the authorization conditions and 
requirements are not fulfilled.  
3. The applicant shall be notified of the rejection decision by way of an official notice within no more t han twenty (20) business days from date making said decision. The 
notice shall include the following:  
a. Content of the decision;  
b. Reasons for the decision; and  
c. A statement advising the applicant of its right to file a grievance against the rejection 
decision with the Grievances and Appeals Committee pursuant to the provisions of 
this Decree by Law.

Article (86)  
Imposing Conditions and Restrictions on the Authori zation to Undertake 
Designated Tasks  
1. The Central Bank may decide to add conditions or restrictions to the Authorization to undertake Designated Tasks;  
2. Prior to making the decision aforementioned in Clause (1) of this Article, the Central Bank may  request the Licensed Financial Institution concerned to provide its notes on 
the reasons of the decision within such period to be specified by the Central Bank;  
3. The Licensed Financial Institution shall be notified of the decision by way of an official 
notice within no more than twenty (20) business days from date making said decision. 
The notice shall include the following:  
a. Content of the decision;  
b. Reasons for the decision; and  
c. A statement advising the Licensed Finan cial Institution concerned of its right to file a 
grievance against the decision with the Grievances and Appeals Committee pursuant 
to the provisions of this Decree by Law.  
  
 
  
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Article (87)  
Suspension, Withdrawal, or Revocation of an Authorization to Undertake 
Designated Tasks  
1. The Central Bank may suspend, withdraw, or revoke the authorization granted to an 
individual undertaking Designated Tasks under an official notice in the following  cases:  
a. If the Authorized Individual ceases to meet or becomes in violation of one or more of 
the fitness and properness criteria and other conditions or restrictions imposed on 
the authorization to undertake Designated Tasks;  
b. If the Authorized P erson violates any of the laws and regulations in force in the UAE, 
or the regulations, rules, standards, or guidelines issued by the Central Bank;  
c. If the Authorized Person fails to adopt or take any measures or actions provided for 
by the Central Bank;  
d. If the Central Bank deems that full or partial withdrawal, revocation, or suspension of 
the authorization helps in achieving objectives and discharging the functions thereof;  
e. If the Authorized Person is declared bankrupt; or  
f. If the Authorized Person refuses to cooperate with the officials, representatives, or 
inspectors of the Central Bank, or refrains from providing required information or 
records.  
2. In all cases, the authorization shall be revoked in case that the License d Financial 
Institution where the Authorized Person works files a revocation application or in case of 
termination of the Authorized Person's relationship with said institution.  
3. The Licensed Financial Institution where the Authorized Person works shall be notified 
of the decision to withdraw, revoke, or suspend the authorization within no more than twenty (20) business days from date of making a decision to this effect. Such notice shall 
include the following:  
a. Content of the decision;  
b. Reasons  for the decision;  
c. Date of entry of the decision into force; and  
d. A statement advising the Licensed Financial Institution of its right to file a griev ance 
against the decision with the Grievances and Appeals Committee pursuant to the  
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 provisions of this Decree by Law.

Article (88)  
Prohibition of Undertaking Designated Tasks at Licensed Financial 
Institutions  
1. The Central Bank may prohibit any individual from performing or undertaking 
Designated Tasks related to Licensed Financial Activities if the Central Bank considers 
the individual concerned not fit and proper to perform or undertake such Designated 
Tasks.  
2. The Licensed Financial Institution concerned shall be notified of the decision to prohibit the individual concerned from performing or undertaking Designated Tasks therein by 
virtue of an official notice within no more than twenty (20) business days as  of date of 
making said decision. Such notice shall include the following:  
a. Content of the decision;  
b. Reasons for the decision;  
c. Date of entry of the decision into force; and  
d. A statement advising the Licensed Institu tion and the person concerned of their right 
to file a grievance against the decision with the Grievances and Appeals Committee 
pursuant to the provisions of this Decree by Law.  
  
Chapter Three  
Responsibilities of Licensed Deposit -Taking Financial Institut ions

Article (89)  
Compliance with the Central Bank's Instructions  
1. Licensed Deposit -taking Financial Institutions shall comply with all rules, regulations, 
standards, circulars, directives and instructions issued by the Central Bank in connection 
with lending or other matters deemed necessary for achieving the Central Bank 
objectives.  
2. The Central Bank may adopt and take all necessary measures and actions, and may use  
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 all means which would ensure proper conduct of business at Licensed Deposit -Taking 
Financial Institutions. Such instructions, directives, measures, procedures, or means may 
either be g eneral for all Licensed Financial Institutions, or be specific for certain Licensed 
Financial Institutions.

Article (90)  
Risk Bureau at the Central Bank  
The Risk Bureau at the Central Bank shall collect, exchange and process of credit 
information obtaine d from Licensed Financial Institutions or any other party as deemed 
necessary by the Central Bank. This bureau shall operate in accordance with the conditions and controls determined by the Board of Directors.

Article (91)  
Protection of Depositors' Intere sts 
1. Each Licensed Deposit -Taking Financial Institution shall prepare a quarterly statement, 
in the form specified by the Central Bank, indicating all the credit and financing facilities 
granted by said Institutions to:  
a. Any member of its board of di rectors;  
b. Any establishment or company where the institution concerned is a partner, director, 
agent, guarantor or warrantor;  
c. Any company where any board member of the institution concerned is a director or an agent;  
d. Any company where an employee, expert or representative of the institution 
concerned is a director, executive officer, agent guarantor or warrantor;  
e. Any Person holding a controlling interest in the institution concerned, or in a 
company related theret o as per provisions of article (95) of this Decree by Law;  
f. Any subsidiary of the group owning the institution concerned;  
g. Any company related to the institution concerned as per the controls set by the 
board of directors;  
h. Any person related directly or indirectly to any board member in the institution  
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 concerned as per the controls set by the board of directors; and  
i. Any other Person determined by the board of directors as per its controls.  
2. The Central Bank shall be  provided with copy of the statement aforementioned in Clause 
(1) of this Article within ten (10) days as of end of each quarter of the fiscal year, or as of 
the date of request made by the Central Bank to this effect.  
3. If it is shown from reviewing th e statement aforementioned in Clause (1) of this Article 
that any of the credit or financing facilities granted by the Licensed Financial Institution, or that any exposure of a particular person may harm the interests of depositors of the 
Licensed Financial Institution concerned, the Central Bank may take one or more of the 
actions listed below:  
a. Require the institution concerned to allocate provisions for these facilities, or to reduce its exposure to a particular person for such period and pursuant to  such 
mechanism determined by the Central Bank; and  
b. Prohibit the institution concerned from providing further credit facilities to the person concerned, or impose certain restrictions on facilities granted to the person 
concerned, as deemed appropriat e. 
 
Chapter Four  
Prohibitions

Article (92)  
Prohibition of Conducting Specific Transactions  
 
1. The Central Bank may prohibit Licensed Financial Institutions from conducting all or part 
of the following:  
a. Dealing in specific assets, investments, or monetary and financial instruments;  
b. Making certain dealings, or conduct specific transactions or commercial businesses; or 
c. Dealing with specific persons.  
2. The Board of Directors may issue  rules, regulations and standards concerning the 
transactions and operations aforementioned in Clause (1) of this Article, and may adopt  
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 and take necessary measures and actions, as deemed appropriate.  
3. The Licensed Financial Institution concerned shall be notified of Central Bank's decision 
by virtue of an official notice within a no more twenty (20) business days as of the date 
of making said decision. The notice shall include the following:  
a. Content of the decision;  
b. Reasons for the decision;  
c. Date of entry of the decision into force; and  
d. A statement advising the Licensed Financial Institution of its right to file a grievance 
against the decision with the Grievances and Appeals Committee pursuant to the 
provisions of this Decree by Law.

Article (93)  
Prohibition of Conducting Non -Banking Businesses  
Banks may not conduct any non -banking businesses, including the following in particular:  
1. Performing any commercial or industrial activities for its o wn account, or acquiring, 
owning or trading in goods, unless acquisition or ownership of such goods is made by 
way of settlement of debts due by third parties thereto, in which case the goods must be 
disposed of within the period specified by the Central B ank.  
2. Buying properties for its own account, except in the following cases:  
a. Properties whose value does not exceed the percentage set by the Board of Directors of the total capital and reserves thereof.  
b. Properties owned by virtue of direct settlement of debts exceeding the percentage aforementioned in paragraph (a) of this Clause, and in such case, the Central Bank 
shall sell these properties within three (3) years. This period may be extended by an 
appro val from the Central Bank based on the guidelines set by the Board of 
Directors.  
3. Buying, acquiring or dealing in shares of the Bank in excess of the ratios set by the Board 
of Directors, unless the excess has been transferred thereto in settlement of a debt, in 
which case, the Bank must sell the shares in excess of the said ratio, within two (2) years from date of acquisition thereof.   
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 4. Buying shares of commercial companies, except within the percentage of the Bank's own 
funds set by the Board of Di rectors, unless said shares are acquired in settlement of a 
debt, in which case the excess must be sold within two (2) years from date of acquisition.  
5. The Board of Directors shall issue regulations for Banks designating the maximum limits for buying and dealing in securities issued by any foreign government or entities 
affiliated thereto, or by any foreign commercial company. These maximum limits shall 
not apply to securities issued or guaranteed by the Public Sector.

Article (94)  
Restriction on Granting Credit Facilities  
1. Notwithstanding the provisions of article (153) of the Commercial Companies Law referred to, Licensed Financial Institutions may grant credit facilities to their board 
members or employees and their relatives as determined by the Board of Directors.  
2. The Board of Directors shall determine conditions and controls of credit facilities which 
may be granted to the categories referred to in Clause (1) of this Article.  
3. No Licensed deposit -taking Financial In stitution may grant credit facilities to its 
customers against their shares therein.  
4. The Board of Directors shall issue regulations for the licensed deposit -taking financial 
institutions regarding the maximum limits of credit facilities granted for th e purpose of 
constructing residential or commercial buildings.  
  
Chapter Five  
Control and Supervision over Licensed Financial Institutions  
Section One  
Control and Supervision Provisions

Article (95)  
Provisions Concerning Holders of Controlling Interest  
1. No person may hold or increase a controlling interest in any Licensed Financial 
Institution, nor exercise any powers  which would make it a holder of controlling interest,  
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 at the discretion of the Central Bank, unless the Central Bank's prior consent is obtained.  
2. Licensed Financial Institution may not allow any person to hold a controlling interest 
therein unless said institution obtains the Central Bank's prior consent.  
3. The Board of Directors shall issue regulations, rules, standards, conditions, instructions, 
and restrictions concerning controlling interests and instances of control.

Article (96)  
Opening Bra nches inside the UAE and in Other Jurisdictions  
Licensed Financial Institution may not open any branch or representative office thereof inside the UAE or in other jurisdictions, and may not relocate or closedown any existing 
branch without Central Bank's p rior approval.

Article (97)  
Providing Information and Reports to the Central Bank  
1. Licensed Financial Institutions shall:  
a. Provide the Central Bank with reports, information, statements, lists and other 
documents determined and deemed necessary by the Central Bank for achieving the objectives and discharge of functions thereof;  
b. Appoint qualified employees who shall be assigned to prepare the reports required by the Central Bank; and  
c. Adopt appropriate measures to ensure that the persons assigned in accordance with the paragraph (b) of this Clause obtain the information required for preparation of the reports.  
2. Licensed Financial Institutions may not ins truct, direct or agree with any of its directors, 
officers, employees, agents representing it, or auditors of its accounts to refuse providing 
the Central Bank with the requirements referred to in Clause (1) of this Article.  
a. The Central Bank shall set rules and guidelines for regular compilation of information 
from Licensed Financial Institutions.  
4. The Central Bank shall specify the nature, forms and grace periods granted for submission of information. Licensed Financial I nstitutions shall provide such  
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 information in accordance with the instructions issued by the Central Bank in this 
regard.  
5. The provisions of this Article shall apply to branches of foreign Licensed Financial Institutions operating in the UAE.  
6. The Board of Directors shall set the regulations, rules, standards, and instructions 
regarding provision of requirements referred to in this Article, and may adopt and take all measures and actions deemed appropriate against the institution concerned or any of  
its employees aforementioned in Para. (b) of Clause (1) of this Article.

Article (98)  
Reporting Violations  
1. Licensed Financial Institutions, their legal representatives, compliance officers, and 
auditors shall be responsible for immediate reporting of any of the following to the 
Central Bank  
a. Occurrence of any material or fundamental developments which would impact the institution's activities, structure, or ove rall position;  
b. Occurrence of any violation to the provisions of this Decree by Law or the 
resolutions, regulations, or instructions issued in implementation thereof.  
2. The persons aforementioned in Clause (1) of this Article shall not be considered  to have 
breached any of the obligations imposed thereon in case of filing a report as per provisions of this article or providing information or opinion to the Central Bank if they 
are acting in good faith. The Licensed Financial Institution may not dismiss any of the 
persons aforementioned in Clause (1) of this Article without the approval of the Central 
Bank.  
3. The Central Bank shall create a mechanism for reporting any violations aforementioned 
in Clause (1) of this Article.  
 
 
 
  
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Article (99)  
Submission of Information Required by the Central Bank on Financial 
Position  
1. Each Licensed Financial Institution shall provide the Central Bank with the statements 
and reports pertaining to its financial position.  
2. Each Licensed Financial Institut ion shall provide the Central Bank, with the following 
within a no more than three (3) months as of the end of the fiscal year, or within such 
period as the Central Bank may specify:  
a. Copy of the audited balance sheet showing use of assets and liabilit ies arising from 
operations of the institution concerned.  
b. Copy of the audited profit and loss statement accompanied by any relevant notes.  
c. Copy of the report of auditors concerning the institution concerned.  
d. Copy of report of the board of directors of the institution concerned.  
3. The Central Bank may also request the Licensed Financial Institution to provide the 
following:  
a. Copy of the interim profit and loss statement on a biannual basis, or for other periods 
specified by the Central Bank.  
b. Any other additional information, reports, or statements deemed necessary.

Article (100)  
Merger and Acquisition  
1. Licensed Financial Institution may not merge with or acquire any other institution, 
regardless of the nature of its activity, nor transfer any part of its liabilities to another 
Person unless the Central Bank's prior approval is obtained.  
2. Without prejudice to the statutes in force in the UAE concerning merger and acquisition, 
the Board of Directors may issue all regulations, rules, standards, conditions, 
instructions, and directives pertaining to merger and acquisition.  
3. Licensed Financial Institut ion shall be notified of Central Bank's decision rejecting the 
proposed merger or acquisition by virtue of a notice within no more than twenty (20)  
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 business days as of the date of making said decision. The notice shall include the 
following:  
a. Content of the decision.  
b. Reasons for the decision.  
c. Date of entry of the decision into force.  
d. A statement advising the Licensed Financial Institution concerned of its right to file a 
grievance against the decision with the Grieva nces and Appeals Committee, in 
accordance with the provisions of this Decree by Law.

Article (101)  
Cessation of Business  
No Licensed Financial Institution may cease to operate fully or partially or cease to perform 
all or part of its Licensed Financial A ctivities unless approval of the majority shareholders 
thereof and approval of the Central Bank is obtained.

Article (102)  
Authority to Issue Instructions and Directives for Prudential Purposes  
1. For the purposes of prudential regulation, the Board of  Directors may issue necessary 
instructions and directives for one or more Licensed Financial Institutions falling within a 
specific category concerning:  
a. Compliance with Central Bank instructions and directives relating to prudential ratios determined  by the Board of Directors concerning capital adequacy, liquidity 
ratio or any other purposes.  
b. Adherence to provisions, or processing of specific assets.  
c. Adherence to limits of large exposures.  
d. Adherence to limits of exposures to related parties.  
e. Satisfaction of any additional requirements pertaining to reporting.  
2. The Central Bank may take any actions in addition to those aforementioned in Clause (1) 
of this Article.  
3. The Central Bank may instruct any subsidiary of a Licensed Financial Institution to take  
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 particular actions, or refrain from performing certain activities in case that:  
a. The Central Bank is the consolidated  regulatory authority over the institution 
referred to in this Clause.  
b. The Central Bank deems that such instruction is necessary for the exercise of 
effective and consolidated prudential regulation of the institution referred to in this 
Clause.  
4. The instructions and directives aforementioned in Clause (3) of this Article may include 
the following:  
a. Obligating subsidiary of the Licensed Financial Institution concerned to suspend 
provision of particular services or to abstain from performance of certain businesses 
or activities including closure of any of its offices or branches outside the UAE if such 
services, businesses or activities would expose the Licensed Financial Institution 
concerned to additional risk, or to risks that may not be manage d effectively and 
appropriately.  
b. Obligating subsidiary of the Licensed Financial Institution concerned to take all 
necessary actions to remove any impediments which would hinder effective 
consolidated regulation.

Article (103)  
Limits of Operations  
The Central Bank may set limits whereto Licensed Deposit -taking Financial Institutions shall 
adhere in their operations including the following:  
1. The maximum of total discount operations or loans and advances the Licensed Financial 
Institution is allow ed to make as of a certain date.  
2. The maximum amount a Licensed Financial Institution may lend to a single person in 
proportion to said person's own funds.  
3. Any other limits the Central Bank may set.  
 
  
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Article (104)  
Governance of Licensed Financial Institutions  
1. The Central Bank shall formulate a general framework for governance of Licensed 
Financial Institutions, and shall set rules and regulations organizing the works of their 
boards of directors along with the requirements to be satisfied by nominees for 
membership of their boards, and the requirements for appointment of their senior 
officers; provided that Licensed Financial Institutions listed in the UAE's capital markets 
shall adhere to the minimum requirements of corporate governance set b y the 
regulatory authority concerned.  
2. Licensed Financial Institutions must obtain Central Bank's prior approval of appointment 
or nomination of any board member, renewal of board membership, an d appointment 
senior staff, or renewal of the employment contract thereof.  
3. The Board of Directors, as deemed necessary for the public interest, may reject appointment, nomination, or renewal of membership of any person in board of directors 
of the Lic ensed Financial Institution, and may also reject appointment or renewal of the 
employment contract of any of the senior staff of said institution.

Article (105)  
Rule Book  
The Central Bank shall prepare an electronic Rule Book containing all rules, regulations, 
standards, resolutions, and circulars issued thereby pursuant to the provisions of this Decree 
by Law. Said Rule Book shall be posted and updated regularly on the Central Bank's website.

Article (106)  
Retroactive Effect of Central Bank Regulations and Resolutions  
Regulations, resolutions, or instructions issued by the Central Bank pursuant to the provisions of this Decree Law shall not have a retroactive effect, and same shall not prevent 
implementation of agreements between Licensed Financial Institutions and their customers 
concluded prior to issuance of said regulations, resolutions or instructions. The Central Bank  
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 shall set the grace periods necessary to enable said institutions to adjust their stat uses in 
accordance with the provisions of this Decree by Law.

Article (107)  
Inspection  
1. The Central Bank may, at any time as, deemed necessary and appropriate, send any of its 
employees or any third party authorized to act on its behalf to Licensed F inancial 
Institutions, the companies owned thereby, or their subsidiaries to ensure soundness of their financial positions, and their compliance with the provisions of this Decree by Law, the regulations and resolutions issued in implementation thereof, an d with any laws and 
regulations in force in the UAE.  
2. In case of inspecting companies owned by Licensed Financial Institutions and their 
subsidiaries which are governed by Regulatory Authorities inside the UAE or in other 
jurisdictions, the Central Ban k shall coordinate with the regulatory authority concerned 
in this regard.  
3. The Central Bank, in coordination with the entities concerned in the UAE, may inspect premises of any person suspected of performing any of the financial activities referred to  
in article (65) of this Decree by Law without a license. In this respect, the Central Bank 
may obligate the suspected person to provide all information, documents, and records 
relating to the unlicensed Financial Activities, and may seize the same.  
4. Licensed Financial Institutions, the companies owned thereby and their subsidiaries 
shall provide the employees aforementioned in Clause (1) of this Article with all 
information, records, books, accounts, documents and statements pertaining to the 
matter su bject of inspection, along with any information he may request, on timely basis.  
5. Within the framework of the inspection, the Central Bank employees may order any 
person to appear on the time and place they may determine to provide them with information, data, documents, or records relating to the inspection process.  
6. The Board of D irectors may issue regulations, rules, standards, directives and 
instructions concerning the mechanisms and procedures for inspecting Licensed Financial Institutions.   
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 7. The Central Bank may adopt and take all measures and actions as deemed appropriate 
for achieving objectives and discharging functions thereof pursuant to the provisions of 
this Decree by Law, and in case of detection of any violation of the provisions of this Decree by Law, or the regulations and resolutions issued in implementation there of, the 
Central Bank may, in particular:  
a. Impose restrictions on certain transactions or activities performed by the Licensed 
Financial Institution concerned.  
b. Request the Licensed Financial Institution concerned to take necessary actions to rectif y the situation immediately.  
c. Appoint a specialized expert or a qualified Central Bank employee to provide advice 
to the Licensed Financial Institution concerned, or to provide supervision over some 
of its operations for such period to be specified by the Central Bank. In this respect, 
the Licensed Financial Institution concerned shall bear remunerations of such 
appointee if it is an expert from outside the Central Bank.  
d. Take or adopt any other action or measure, or impose any penalties as deemed 
appropriate.  
8. Licensed Financial Institutions shall bear all costs of inspection and investigations 
entrusted to any third party by the Central Bank in case of violation by the said 
institution of the provisions of this Decree by Law, and the regulation and resolutions issued in implementation thereof.

Article (108)  
Inspection of Entities Affiliated to National Licensed Financial Institution 
Operating in Other Jurisdictions  
In cooperation and coordination with the regulatory authorities concerned in other 
jurisdictions, the Central Bank may delegate one or more inspectors or experts to inspect 
entities affiliated to national Licensed Financial Institution operating in other ju risdictions.  
The inspection shall include entities affiliated to national Licensed Financial Institution 
operating in Financial Free Zones, in cooperation and coordination with the regulatory 
authority concerned in the Financial Free Zones.   
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Article (109)  
Expert's Report  
The Central Bank may assign an expert or a person qualified and specialized in Licensed 
Financial Activities to provide it with a report on a certain matter pertaining to direct and 
indirect businesses and activities of a certain Licensed F inancial Institution as specified by 
the Central Bank. This assignment shall be made in accordance with the conditions and procedures established by the Central Bank at the expense of the entities referred to in this 
Article.

Article (110)  
Judicial Offic er Capacity  
Judicial officer capacity shall be conferred upon the Central Bank staff to be appointed by 
virtue of a resolution by the Minister of Justice in coordination with the Governor and they 
shall be responsible for establishing acts committed in vio lation to the provisions of this 
Decree by Law.

Article (111)  
Requesting Intervention in Lawsuits and Judicial Proceedings and 
Notification of Investigations  
1. Subject to the provisions of Civil Procedure Law, the Central Bank may request to 
intervene in any lawsuit filed with judicial authorities to which a Licensed Financial 
Institution is party.  
2. Law enforcement authorities and other authorities concerned shall notify the Central Bank of any investigations or proceedings initiated against License d Financial 
Institutions. The Central Bank may provide said authorities with any clarifications, 
statements, or information as deemed appropriate in this regard.  
  
   
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 Section Two  
Financial Accounts

Article (112)  
Licensed Financial Institution Fiscal Year  
The fiscal year of a Licensed Financial Institution shall commence on the first day of January 
and shall end on the thirty first of December every year except for the first fiscal year, which 
shall begin on the date of registration thereof and shall end by  the end of the following fiscal 
year.

Article (113)  
Licensed Financial Institutions Accounts  
1. Branches of foreign Licensed Financial Institutions shall maintain separate accounts for 
their total operations in the UAE, including the balance sheet and  profit- loss account.  
2. Branches and departments affiliated to a local or foreign Licensed Financial Institution 
operating inside the UAE shall, for the purposes of bookkeeping, constitute one financial 
institution.

Article (114)  
Licensed Financial Institutions Auditors  
1. Each Licensed Financial Institution shall, every year, appoint one or more auditors 
approved by the Central Bank for auditing its accounts. Should the Licensed Financial 
Institution concerned fail to appoint an  auditor, the Central Bank shall appoint and 
determine the remuneration of an auditor for the institution concerned which shall bear such remuneration.  
2. Auditors' tasks shall include preparation of a report on the balance sheet and the profit and loss accounts for the shareholders, provided that said report shall state whether the 
annual balance sheet and profit and loss accounts are true and acceptable, and whether the Licensed Financial Institution concerned has provided them with all the information and clarifications required for performance of their mission. The Licensed Financial  
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 Institution concerned shall provide the Central Bank with a copy of the auditors' report 
accompanied by a copy of the balance sheet and the profit and loss account at leas t 
twenty (20) business days before convening the General Meeting.  
3. The General Meeting of a Licensed Financial Institution may not be convened prior to receipt of Central Bank's notes on the report. Within ten (10) business days as of the date 
of recei pt of the report aforementioned in Clause (2) of this Article, The Central Bank 
may make a decision not to approve the dividends proposed for distribution to 
shareholders due to any shortfall in provisions, decline in the capital adequacy ratio 
below the m inimum required ratio, or due to any reservation stated in the auditors' 
report or any reservation of the Central Bank, which would impact distributable 
dividends.  
4. The auditors' report, together with the report of the board of directors of the License d 
Financial Institution shall be read to the shareholders at the Annual General Meeting if 
the institution concerned is incorporated in the UAE. Three (3) copies of each report shall be provided by the institution to the Central Bank within twenty (20) bus iness days as of 
the date of holding the General Meeting. For Licensed Financial Institution incorporated in another jurisdiction, a copy of the auditors' report shall be forwarded to its head office, 
and three (3) copies thereof shall be submitted to the Central Bank within twenty (20) 
business days from date of issuance of the report.  
5. The auditors may not be members of the board of directors of the Licensed Financial 
Institution for which they are appointed to audit its accounts. They may not be 
employees thereof or provide consulting services thereto.  
6. A Licensed Financial Institution shall not grant credit facilities of whatever nature to the 
auditors of its accounts. An auditor approved by the Central Bank may not commence its 
tasks at a Licensed Financial Institution unless any obligations it may have towards such 
institution are settled.  
7. The auditors shall be r esponsible for the contents of their reports on the financial 
statements of the Licensed Financial Institution concerned. In case of their failure to 
perform the tasks entrusted thereto properly, or in case they violate the provisions of this Decree by Law , and the regulations and decisions issued in implementation thereof, the  
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 Central Bank may take any necessary measures or procedures, in collaboration and 
coordination with the authorities concerned in the UAE, to deregister the auditors. 
Further, the Cent ral Bank may, at its own discretion, take any administrative or legal 
actions against the negligent or violating auditors.  
8. The Central Bank may require auditors of a Licensed Financial Institution and the 
companies owned thereby or subsidiaries thereo f to submit a report, at the expense of 
the Licensed Financial Institution concerned, on their compliance with the provisions of 
this Decree by Law and the regulations issued in implementation thereof.  
9. The Board of Directors shall issue regulations an d create a register of approved auditors 
who are authorized to audit the accounts of Licensed Financial Institutions.

Article (115)  
Publication and Provision of Accounts Information  
1. Each Licensed Financial Institution shall publish and make available the following information and data on its website and at all of its offices and branches inside the UAE:  
a. A copy of the audited balance sheet and profits and losses statement, and a c opy of 
the auditors' report. In case that the Licensed Financial Institution concerned is 
incorporated in another jurisdiction, the publication and display shall be compliant 
with the laws applicable in the relevant jurisdiction;  
b. A list of names of bo ard members, executive officers, and their deputies or assistants; 
and  
c. Names of all subsidiaries or branches owned in whole or in part thereby, or 
companies related to the Licensed Financial Institution concerned.  
2. The Central Bank, as deemed appr opriate, may request any Licensed Financial 
Institutions to publish or provide any information or statements pertaining to their accounts in addition to the information required under Clause (1) of this Article.  
  
 
 
  
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 Section Three  
Restructuring and Liquidation of Licensed Financial Institutions

Article (116)  
Deterioration of the Financial Position  
1. The Board of Directors shall develop a framework for the restructuring of the licensed 
deposit -taking financial institutions to  minimize the effects of the deterioration of their 
financial positions on the financial system of the UAE, including the effects of the 
deterioration of the financial positions of the companies owned thereby or affiliated thereto.  
2. The restructuring f ramework shall include a set of prudential and qualitative triggers 
signaling material risks which would lead to the deterioration of the financial position of 
the institutions referred to in Clause (1) of this Article. For this purpose, the Central Bank 
my adopt and take any of the following measures and actions for the protection of the 
institution concerned and its depositors, as deemed appropriate:  
a. Set a minimum liquidity ratio for the institution concerned which is commensurate 
with the risks gene rated from its activities;  
b. Obligate the institution concerned to provide additional financial resources to 
support the paid -up capital as per the terms and conditions set by the Board of 
Directors;  
c. Make a decision whereunder the institution concerned is merged with another 
Licensed Financial Institution;  
d. Permit any Financial Institution to acquire the institution concerned;  
e. Form an ad hoc committee to manage the institution concerned. Said committee 
shall have the right to take whatever actions it deems appropriate, as per conditions 
and controls set by the Board of Directors including the authority to make a decision 
to stop or suspend all or part of the activities of the institution concerned e ither with 
immediate effect or within another timeframe as well as consequential actions  
f. The Central Bank may undertake, over a period specified by the Board of Directors, 
management of the institution concerned, and shall, in this case, substitute 
management of the institution concerned in respect of all powers, including financial  
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 and administrative powers. In addition, all powers and authorities of the board of 
directors and the general meeting of said institution shall be frozen with an 
immediate e ffect until expiry of the period of interim management.  
g. Request competent authorities in the UAE to place the institution concerned under 
interim custody and seize its assets, property and shareholders' equity;  
h. Make a decision requesting the court of competent jurisdiction to render a judgment ordering the liquidation or dissolution of the institution concerned, and prepare a plan for the liquidation or transfer of its assets and liabilities as well as its settle ments 
and releases, as deemed appropriate, and to implement or oversee the implementation of the liquidation plan, or decide the restructuring of the institution 
or submit a request to the competent court to declare the bankruptcy thereof in 
accordance wit h applicable laws;  
i. Where a decision is made to merge or liquidate a Licensed Financial Institution incorporated in another jurisdiction and has a branch operating in the UAE, the same procedures applicable in the jurisdiction of incorporation concerne d shall apply if 
said procedures provide better protection for customers in the UAE, unless otherwise agreed upon with the authority concerned; and  
j. Adopt and take any other measures or actions in accordance with a decision by the Board of Directors.  
3. Whenever deemed necessary, the Central Bank may coordinate with Federal and Local 
entities concerned prior to making any decision by Board of Directors pursuant to the 
provisions of this Article. Further, the Central Bank may request competent judicial  
authorities to take precautionary and urgent measures, and any other arrangements, which would ensure protection of the funds and interest of investors and depositors, or 
which would serve the public interest.

Article (117)  
Publication of the Restructuring or Liquidation Announcement  
1. In case of restructuring or liquidation of a Licensed Financial Institution, an 
announcement to that effect shall be published in the Official Gazette and in at least two  
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 local daily newspap ers published in Arabic and in English, and for a period not less than 
three (3) business days.  
2. The announcement shall include the following:  
a. A grace period of no less than three (3) months to enable customers of the Licensed 
Financial Institutio n concerned to take necessary actions to reserve their rights; and  
b. Details and tasks of the entity or liquidator assigned to perform the restructuring 
procedures.  
3. If the restructuring or liquidation of a Licensed Financial Institution is due to deregistration thereof from the Licensed Financial Institution register, either the 
Chairman of the Board or his delegate may set in the deregistration decision the date of 
closing down the institution concerned and determine the entity assigned to perform the 
restructuring or to liquidate any outstanding operations on such date.

Article (118)  
Monitoring the Efficacy of Licensed Financial Institutions under 
Restructuring or Liquidation  
The Central Bank shall continue to monitor the efficacy of any Licensed Financial Institution being reconstructed or liquidated until final closure of its offices.

Article (119)  
No Prejudice to Provisions of Other Laws Concerning Restructuring or 
Liquidation  
The provisions of Articles Nos. (116), (117), and (118) of this Decree by Law law shall not preclude implementation of provisions of any other laws concerning restructuring and 
liquidation in forc e in the State.  
  
 
 
  
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 Chapter Six 
Protection of Customers

Article (120)  
Confidentiality of Banking and Credit Information  
1. All data and information relating to customers' accounts, deposits, safe deposit boxes 
and trusts with Licensed Financial Institut ions and all relevant transactions shall be 
deemed confidential in nature, and may not be made available or disclosed, directly or 
indirectly, to any third party without the written permission of owner of the account or deposit, his legal attorney or agent  so authorized, and in cases authorized legally.  
2. Prohibition to make such information available or to disclose the same shall survive 
even after termination of relationship between the customer and the Licensed Financial 
Institution for any reason.  
3. Chairmen and members of boards of directors of Licensed Financial Institutions, their managers, staff, experts, consultants, or technicians are prohibited from providing or 
disclosing any information or data pertaining to their customers, their accounts , deposits 
or relevant transaction, and are prohibited from enabling others to have access to the 
same unless permitted by law.  
4. Said prohibition shall apply to all entities and persons having direct or indirect access to the aforementioned data and in formation by virtue of their professions, positions or 
nature of work.  
5. The Central Bank shall set rules and conditions organizing exchange of banking and 
credit information in its capacity as the competent Regulatory Authority in the UAE in this regar d. 
6. Provisions of Clauses (1) and (2) of this Article shall not prejudice the following:  
a. The powers legally vested in security and judicial authorities, the Central Bank and its 
employees;  
b. Duties entrusted to auditors of the financial institution concerned;  
c. The obligation of the institutions concerned to issue a certificate, upon the 
beneficiary's request, of reasons for refusal to cash a cheque;  
d. The obligation of institutions concerned to issue a certificate of partial payment of  
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 the value of a cheque pursuant to the provisions of the Commercial Transactions 
Law referred to hereinabove;  
e. The right of the institutions concerned to disclose whole or part of the data pertaining to their customer's transactions in order to establish the institution's right in connection with a legal dispute arising with its customer in respect of such 
transactions; and  
f. Provisions of laws and international agre ements in force the State, in addition to any 
provisions concerning anti- money laundering, terrorist financing and illegal 
organizations financing.

Article (121)  
Protection of Clients of the Licensed Financial Institutions  
1. The Central Bank shall create the regulations for protection of clients of licensed 
financial institutions, in proportion to the nature of the activities practiced by such 
institutions and the financial services and productions they provide.  
2. The Centr al Bank may establish a unit with independent legal personality to receive and 
decide on the complaints of clients of the licensed financial institutions. The Board of 
Directors shall issue a decision to establish such unit and determine its functions, rules of 
procedure and powers as well as the human resources and financial affairs regulations 
applicable thereto.  
3. The Central Bank and licensed financial institutions shall jointly work to raise the 
community awareness about the types of banking service s and financial products and 
the risks inherent in them, through all available means of communication and media, in 
accordance with the controls set by the Central Bank.  
4. Licensed financial institutions may not charge interest on accumulated interest, i.e. 
compound interests, in respect of the facilities granted to clients. In this regard, the controls and rules set by the Central Bank in the control regulations issued thereby shall 
be followed.  
  
  
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 Article (121)  bis 
Credit Facility Guarantees  
1. The licensed financial institutions shall obtain the sufficient guarantees for all types of 
facilities provided to the natural clients and private sole proprietorships, in accordance 
with the client's income or the guarantee, if any, and the size of the re quired facilities, as 
determined by the Central Bank.  
2. No application, action or plea filed to the competent judicial authorities or the arbitral 
tribunals by any licensed financial institution in respect of a credit facility provided for a 
natural person or a private sole proprietorship shall be accepted if such financial 
institution fails to obtain the guarantees referred to in Clause (1) of this Article.  
3. The Central Bank may impose administrative an d financial penalties which it deems 
appropriate on the licensed financial institutions which violate the provision of Clause 
(1) of this Article, in accordance with article (137) of the present Decree -Law.

Article (122)  
Deposits Guarantee Regulation  
In coordination with the Ministry, the Board of Directors may develop regulations for 
protection of deposits and the rights of depositors of Licensed Financial Institutions. Said 
regulation may establish and determine structure of compensation fund.

Article (123)  
Financial Inclusion  
The Board of Directors shall develop necessary regulations and mechanisms to ensure that every natural person shall have access to all or part of financial services and products from 
Licensed Financial Institutions suitable for him/ her.  
  
 
 
  
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 Part Four  
Financial Infrastructure  
Chapter One  
Money Transfer and Settlement of Securities

Article (124)  
Clearing and Settlement Operations  
1. The Central Bank may:  
a. Establish, develop and/ or operate one or more clearing and settlement  systems 
concerning money transfers and settlement of securities issued by the Central Bank, 
or the Public Sector, and for settlement of other obligations amongst the Participants 
in this system. The Bank may perform the same on its own or in partnership w ith any 
other party, or by entrusting such tasks to third parties;  
b. Link the systems referred to in Para. (a) of this Clause to similar systems inside and outside the State; and  
c. Create and/or operate central securities depository (CSD) systems for securities 
issued by the Central Bank or the Public Sector, and data repository systems for 
monetary and financial transactions in the State, and link such systems to similar 
systems inside and outside the State.  
2. The Central Banks shall coordinate with other regulatory authorities and bodies 
concerned in the UAE in connection with creation of data repository systems for 
monetary and financial transactions referred to in Para. (c) of Clause (1) of this Article.  
3. The Board of Directors shall develop necessary regulations concerning the systems 
referred to Clause (1) of this Article.  
 
Article (124) TER  
Application for License of Financial Infrastructure System or Extension of its 
Scope  
1. Based on the regulations set by the Board of Directors, any legal person may file an 
application with the Central Bank to obtain a license of financial infrastructure system or  
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 to expand the scope of a l icense previously issued.  
2. The Board of Directors shall issue the regulations, rules, criteria and conditions 
pertaining to the licensing of the financial infrastructure system, including:  
a. Merit and eligibility criteria;  
b. Resources required fo r the system; and  
c. Control and supervisory systems.  
3. The Board of Directors may require the license applicant to meet any further 
requirements or conditions at its own discretion and as he deems to be in the public 
interest.  
  
Article (124)  QUATER 
Deciding on the Application for License of Financial Infrastructure System or 
Extension of its Scope  
1. The application for license of financial infrastructure system or extension of its scope shall be decided on within a period not exceeding sixty (60) working days from the date 
of satisfying the requirements and conditions of the license. The lapse of such period 
without reply shall be deemed as rejection of the application.  
2. The Central Bank may request the applicant to meet the requirements and co nditions of 
the license within the period it determines.  
3. The Central Bank may reject the application or request the expansion of the scope of the 
license of a financial infrastructure system at its sole discretion, in accordance with the 
absorptive ca pacity of the financial sector of the State and the requirements of the 
domestic market. The decision issued thereby in this regard shall be final and not 
appealable before the Grievances and Appeals Committee.  
4. The applicant shall be notified of the s ubstantiated rejection decision by means of an 
official notice within a period not exceeding twenty (20) working days from the date of 
its issuance.  
  
 
  
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Article (125)  
Retail Payment Operations and Related Electronic Services  
The Central Bank shall solely:  
1. Have the authority to develop regulations, rules, and procedures relating to electronic 
banking transactions, digital money, and Stored Value Facilities, and shall regulate 
electronic Retail Payment Systems, and banking and financial electronic servic es 
licensed and supervised thereby  
2. Take all measures and procedures deemed appropriate to minimize the risks associated 
with operations and systems referred to in Clause (1) of this Article to which the UAE's 
financial and economic systems are exposed . 
  
Chapter Two  
Powers and Functions of the Central Bank in respect of Financial 
Infrastructure Systems

Article (126)  
Designation of Systems  
1. The Central Bank may designate any Financial Infrastructure System as  systemically 
important if it deems, at its own discretion, that any operational malfunction or 
inefficient performance of said system would negatively impact processing of the daily 
operations of financial institutions operating in the UAE, or the stability of the financial 
system in the UAE.  
2. For the purposes of designating a certain financial infrastructure system, one of the 
following requirements shall be satisfied:  
a. The system concerned is operating in the UAE;  
b. The system concerned has the capacity to accept clearing and settlement of financial 
Transfer Orders denominated in national Currency, without prejudice to provisions 
of article (28) hereof; or  
c. The system concerned has the capacity to provide transfer , clearing or settlement of 
financial Transfer Orders for retail payment activities denominated in any currency.   
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 3. In case that the Central Bank intends to designate any of the Financial Infrastructure 
Systems licensed thereby as systemically important,  the Central Banks shall:  
a. Notify the system operator  or Settlement Institution, by virtue of an official notice, of 
the Central Bank's intention to designate said system as systemically important, and shall clarify grounds of such intention. The notice shall include other terms and 
conditions associated wit h the designation decision.  
b. The notice referred to in Para. (a) of this Clause shall set a grace period of no less than 
ten (10) business days from date of the notice within which the system operator or 
its Settlement Institution may provide their opi nions or state the reasons why the 
system should not be designated.  
c. Make its decision whereby the designation of the system is granted within no more 
than twenty (20) business days as of the date of receipt of responses from parties 
concerned, or expi ry of the grace period stated in the notice without response.  
4. The operator or the Settlement Institution of the Designated System may file a grievance 
against the designation decision referred to in Clause (3) of this Article with the 
Grievances and A ppeals Committee in accordance with the provisions of Part (V) of this 
Decree by Law.  
5. The Clearing and Settlement Systems established, developed, and/or operated in 
accordance with the provisions of article (124) hereof shall be deemed as Designated Systems.  
6. In case that the Central Bank intends to designate any of the Financial Infrastructure Systems licensed by any other Regulatory Authorities in the UAE or in other jurisdictions 
as systemically important, the Central Bank shall express its opin ion in this regard to the 
regulatory authority concerned. Should the regulatory authority concerned has no objection to such designation, it shall:  
a. Notify the system operator or Settlement Institution, by virtue of an official notice, of 
the grounds of such designation. The notice shall include other terms and conditions 
associated with the designation decision.  
b. The notice referred to in Para. (a) of this Clause shall set a grace period of no less than 
ten (10) business days from date of the notice within which the system operator or  
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 Settlement Institution may provide their opinions or state the reasons why the 
system should not be designated.  
c. Make its final decision whether to approve or disapprove the Central Bank's request to designate the system concerned within no more than twenty (20) business days as of the date of receipt of responses from parties concerned, or expiry of the grace 
peri od stated in the notice without response.  
7. The Central Bank may revoke designation of a particular Financial Infrastructure System 
licensed thereby, or request the regulatory authority concerned to take the same action if 
the Central Bank deems, at its  own discretion, that the system is no longer of systemic 
importance. The regulatory authority concerned, the operator of the system, or its 
Settlement Institution, as the case may be, shall be officially notified of such decision.

Article (127)  
1. The Central Bank shall have the sole authority to supervise operations of systems 
licensed thereby and to ensure their soundness, in accordance with relevant 
international standards. For this purpose, the Central Bank may require the systems 
operators or S ettlement Institutions to adopt necessary measures and procedures.  
2. The Central Bank shall be responsible for monitoring the implementation of additional supervisory measures and procedures concerning Designated Systems licensed by other 
Regulatory Aut horities whether inside the UAE or in other jurisdictions in cooperation 
and coordination with the regulatory authority concerned, in this regard, the Central 
Bank may request the regulatory authority concerned to:  
a. Obligate operators of designated sys tems or settlement institutions of the same to 
comply with Central Bank's instructions in this respect and any relevant international 
standards;  
6. Ensure proper and regular functioning of Designated Systems.  
c. Ensure soundness of financial positions of operators of Designated Systems and their 
Settlement Institutions, as necessary; and  
d. Require the operators of the Designated Systems or their Settlement Institutions to 
provide it with the information deemed necessary for achievement of its objectives  
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 and discharge of its functions.  
3. The Central Bank may appoint whoever deemed appropriate from among experts and 
advisors specialized in financial infrastructure to assist the Cen tral Bank in performing its 
duties and functions in accordance with the provisions of Part (IV) hereof to keep in line 
with best international standards and practices in this field.

Article (128)  
Suspension or Revocation of the License  
1. The Central Bank may suspend or revoke the license granted by the same to a Financial Infrastructure System, pursuant to the provisions of Articles Nos. (124) and (125) of this 
Decree- Law, by virtue of an official notice to the respective operator or the S ettlement 
Institution of such system, and may take necessary actions in this respect, as the case 
may be, if it decides that such system is no longer capable of conducting its operations. 
The Central Bank shall grant a time limit of no less than twenty (20 ) business days, as of 
the date of the notification, within which the relevant system operator or the Settlement 
Institution may file an objection to the Central Bank's decision on the suspension or 
revocation of the license, and shall provide their justif ications for such objection in 
accordance with the provisions of Part V. hereof.  
2. In case the Central Bank considers that any Designated System licensed by any Regulatory Authorities in the State or in other jurisdictions is no longer capable of 
conduc ting its operations, the Central Bank may request the relevant regulatory 
authority under an official notice to suspend or revoke the license of said system and to take necessary actions in this respect, as the case may be. The relevant regulatory 
authorit y shall have the right to approve or reject the request of the Central Bank. In case 
of the approval, the procedures and controls applicable with such authority shall apply.  
3. In all cases, the suspension or revocation of a license granted to a Designat ed System in 
accordance with the provisions of this Article shall not affect any transaction cleared or 
settled by the system concerned prior to the effective date of the suspension or 
revocation.  
   
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Article (129)  
Authority to Develop Regulations and Instructions  
1. The Board of Directors shall develop regulations, rules, instructions, directives, and 
codes of conduct as deemed appropriate for the implementation of the provisions of 
Part (IV) hereof, and to enable  the Central Bank to achieve the objectives and to 
discharge its functions, including the following:  
a. Regulations, conditions and rules pertaining to licences granted by the Central Bank 
pursuant to the provisions of Article Nos. (124) and (125) hereof  to operators of 
Financial Infrastructure Systems, the Settlement Institutions for such systems or 
participants; and  
b. Regulations, rules and standards pertaining to the designation of and supervision 
over Financial Infrastructure Systems as per the pro visions of Articles Nos. (126) and 
(127) hereof, and those pertaining to monitoring operations of said systems, and shall set rules of compliance applicable to participants.  
2. The Central Bank may exempt operators of financial infrastructure systems lic ensed 
thereby, settlement institutions affiliated to the former, and participants, either in general or in particular, from provisions of the regulations, rules, directives and controls 
issued thereby.

Article (130)  
Determining Violations  
1. The Board of Directors shall develop regulations specifying types of violations pertaining to Financial Infrastructure Systems licensed by the Central Bank. Any of the following 
instances shall be considered a violation to the terms and conditions relating  thereto:  
a. Violation of operational requirements of systems and of relevant settlement rules 
and procedures.  
b. Failure of an operator of a system or its Settlement Institution to comply with the 
Central Bank request for information or documents.  
c. Failure to comply with Central Bank's decisions and instructions, and failure to take a particular action deemed necessary by the Central Bank to render the system  
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 compliant with the criteria sets by the Central Bank.  
d. Failure of an operator of a system or its Settlement Institution to report any action 
taken under the systems Default Arrangements in respect of a participant.  
e. Failure of a participant to notify the system operator, its Settlement Institutions and 
the Central Bank of any of judgment rendered to declare said person bankrupt or 
place it under liquidation.  
f. Operating a system without obtaining a license in accordance with the provisions of Articles Nos. (124) and (125) hereof.  
g. Failure of an operator of a system or its Settlement Institution to comply within a specified period with any request from the Central Bank or any other government 
body in connection with any default.  
h. Failure of an operator of a system to notify the Central Bank of judg ment rendered 
declaring bankruptcy or liquidation of any participant.  
i. Providing the Central Bank with incorrect or misleading information.  
j. Adding an incorrect entry to any regist ration book or to any document related to a 
particular system, or causing alteration, deletion or obliteration of such entry.  
k. Any other action pertaining to clearing and settlement or retail payment transactions 
deemed by the Central Bank a violation.  
2. The Central Bank may take any actions, as deemed appropriate, to correct any violations 
referred to in Clause (1) of this Article, and shall determine method settlement thereof.  
3. The Central Bank shall officially notify the violating Person under  provisions of Clause 
(1) of this Article of any actions to be undertaken against it. The violating Person shall be granted a grace period of no more than ten (10) business days from date of the notice 
within which it may file a grievance against the Centr al Bank decision. In case the 
grievance is rejected, the violating person may refer the matter to the Grievances and 
Appeals Committee pursuant to the provisions of this Decree by Law. The decision of the 
Grievances and Appeals Committee shall be final. Sh ould the violating person not 
respond to Central Bank's decision within the period prescribed in this Clause, the decision of the Central Bank shall be final and enforceable.  
   
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 Chapter Three  
Finality of Transactions and Proceedings

Article (131)  
Finality of Payment and Settlement  
1. All transactions conducted through a Financial Infrastructure System meeting one of the 
designation conditions aforementioned in Clause (2) of article (126) hereof shall be 
final, irrevocable and irreversible in the following cases:  
a. Transfer of money from or to the account of a participant;  
b. Settlement of a payment obligation; and  
c. Settlement of an obligation to transfer, or the actual transfer of book -entry securities.  
2. Entry of any transfer or settlement pertaining to the transactions referred to in Clause (1) of this Article may not be cancelled, set aside, re -paid, reversed, rectified, or suspended 
whether by a court judgment or order, or by law.

Article (132)  
Precedence of Implementation of Rules and Procedures of Financial 
Infrastructure Systems over Rules and Procedures of General Insolvency and 
Bankruptcy  
1. Upon commencement of liquidation of assets of a person under liquidation, insolvency, 
financial res tructuring, or bankruptcy, none of the following operations and procedures 
which have been carried out through Financial Infrastructure Systems meeting one of 
designation conditions aforementioned in Clause (2) of article (126) hereof shall be affected to the extent that they are pertaining to the following:  
a. A Transfer Order;  
b. Any disposition of property pursuant to the Transfer Order;  
c. Default Arrangements of such systems;  
d. Rules and procedures of such systems concerning the settlement of Transfer Orders 
not processed under the Default Arrangements of such systems; and  
e. Any procedure taken to liquidate the securities deposited as security and related to  
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 parties participat ingin such systems, other than the Default Arrangements thereof.  
2. Trustee, receiver in bankruptcy or any other person appointed to manage the 
bankruptcy in cases of bankruptcy or liquidation may not take any actions or procedures 
contrary to the provis ions of this Decree by Law, or actions or procedures which would 
preclude or affect Default Arrangements of systems referred to in Clause (1) of this 
Article.  
3. In cases of bankruptcy or liquidation, no obligation arising out of a Transfer Order under 
Default Arrangements of systems referred to in Clause (1) of this Article may be 
established until the completion of the transfer or payment order.  
4. A debt or other liability arising pursuant to Clause (3) of this Article may not be taken 
into account, whenever such debt or liability is not proven, for the purposes of settling 
debts of liabilities by way of setting -off, clearing, or netting until the completion of the 
action taken under the Default Arrangements of such systems.

Article (133)   
Netting of Obligations of Insolvent or Bankrupt Participating Parties  
1. Operator of a Financial Infrastructure System, which meets any of the designation 
conditions referred to in Clause (2) of article (126), may perform Netting of debit or 
credit liabilities of a Participant in this system which are incurred before the point of time 
when the competent court decides to declare the bankruptcy or liquidation of the participant concerned.  
2. In case that Netting has been effected as provided in Clause (1)  of this Article:  
a. Liabilities already netted shall be set aside from the bankruptcy or liquidation 
proceedings; and  
b. Net unpaid liabilities owed to or by the Participant in the system that has not been 
cleared yet shall be payable to the Participant and may be recovered for the benefit 
of his creditors or are provable in the bankruptcy or liquidation, as the case may be.  
3. Netting operations processed by the system concerned operator in accordance with 
Clause (1) of this Article may not be cance lled during a bankruptcy or liquidation 
process, nor any financial transfers already paid in accordance with Para. (a) of Clause  
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 (2) of this Article.

Article (134)  
Reservation of Rights Pertaining to Transactions  
1. Unless as otherw ise expressly provided for herein, this Decree by Law shall not limit, 
restrict or otherwise affect:  
a. Any right, title, interest, privilege, obligation or liability of a person resulting from any 
transaction in respect of a Transfer Order that has been  entered in a Financial 
Infrastructure System meeting any of the designation conditions referred to in Clause 
(2) of article (126).  
b. Any investigation, judicial proceedings or remedies in respect of any such right, title, interest, privilege, obligatio n or liability.  
2. Nothing in Clause (1) of this Article shall be construed to require:  
a. Revocation of any netting process performed by the operator of the system concerned, whether pursuant to its Default Arrangements or otherwise;  
b. Revocation of any Transfer Order given by a participant which has been entered into the system concerned; or  
c. Reversal of a payment or settlement made under the operating rules of the system 
concerned.

Article (135)  
Obligation of Participant to Repor t Insolvency  
1. A Participant in a Financial Infrastructure System, which meets any of the designation 
conditions referred to in Clause (2) of article (126), shall notify the operator of the 
system or its Settlement Institution, the regulatory authority concerned, and the Central 
Bank, as soon as practicable, if it becomes aware of occurrence of any of the following 
instances inside the UAE or in other jurisdictions:  
a. Submission of a plea for declaration of bankruptcy or liquidation thereof;  
b. Rendering a judgment declaring bankruptcy or liquidation thereof; or  
c. Initiation of a bankruptcy or liquidation declaration upon the request of owners,  
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 shareholders, or management of a Participant.  
2. A participant failing to notify of occurrence of an event referred to in Clause (1) of this 
Article within the required timeframe shall not be deemed in violation in case that:  
a. He has taken reasonable actions to comply with the provisions of Clause (1) of this 
Article; or  
b. The bodies referred to  in Clause (1) of this Article were already aware of the relevant 
event by the time the participant was required to notify the operator under the provisions of this Article.  
 
Part Five  
Deciding on Grievances and Appeals

Article (136)  
Grievances and Appeals Committee  
1. An independent committee called the "Grievance and Appeal Committee" shall be established under the provisions of this Decree -Law. The Cabinet shall issue, at the 
proposal of the Board of Directors, a resolution on its  formation, term of office, work 
system and all procedures and rules related to the adjudication of grievances and 
appeals, including fees payable for the examination thereof.  
2. The formation of the committee shall include one or more judge(s) and two e xperts in 
financial and banking matters.  
3. Nominated committee's members may neither be members of the Board of Directors, 
nor occupy any position at the Central Bank or at any of the Licensed Financial 
Institutions.  
4. The committee's chairperson or any of its members may not have any interest with any 
party to the dispute; otherwise, he must disclose such interest. In such case, another 
member shall be temporarily appointed to examine the dispute.  
5. Except for regulations, guidelines, directives, policies and regulatory and supervisory 
resolutions of a public nature, the Committee shall have the sole and exclusive 
jurisdiction to decide on grievances and appeals filed against any decisions related to 
financial and banking activities issued by the Central Bank, pursuant to the provisions of  
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 this Decree -Law. In order to carry out its functions, it may take all or some of the 
following actions:  
a. Summon any person to appear before the Committee to prov ide any evidence, 
testimonies, information or statements, and examine the same;  
b. Hear the testimony of any witnesses under the legal oath;  
c. Assign any experts, as deemed appropriate, to express an opinion on any matter 
related to the dispute; and  
d. Take any actions and issue any instructions its deems appropriate to perform its functions.  
6. No appeal against decisions falling within the Committee's functions may be admissible, 
pursuant to the provisions of this Article, before being grieved or  challenged before the 
Committee and the grievance is decided, as the case may be.  
7. If the Committee decides to reject or dismiss any grievance or appeal, the Committee 
may impose a fine of not more tha n (AED 200,000) two hundred thousand Dirhams on 
the applicant.  
8. The Committee may stay the execution of the grieved or appealed decision, if it deems necessary, until a decision is made on the dispute.  
9. No grievance or appeal against any decision m ay be admissible before the Committee 
following the lapse of (15) fifteen business days of the date of notifying the stakeholder or where his knowledge is certainly established.  
10. The decision made by the Committee on a grievance or appeal shall be fi nal and may be 
challenged only before the Higher Federal Court within twenty (20) business days of 
date of the decision notification. Upon request of the appellant, the Higher Federal Court 
may stay the execution of the decision made by the Committee until the Court 
adjudicates the disputed matter if it considers that the appeal is grounded on genuine 
grounds and that the continuation in executing the Committee's decision shall have 
irreversible consequences.  
  
   
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 Part Six 
Administrative and Financial Penalties and Punishments  
Chapter One  
Administrative and Financial Penalties

Article (137)  
1. Without prejudice to any other penalties provided for in other laws in the State, in case a 
violation is proven to have been commit ted by a Licensed Financial Institution or by an 
authorized person of the provisions of this Decree -Law or resolutions, rules, standards or 
instructions issued by the Central Bank in implementation thereof, or any measures 
adopted by the Central Bank, including anti- money laundering and financing terrorism 
and unlawful organizations, the Central Bank may impose, at its sole discretion, one or more of the following penalties or take any of the following measures:  
a. Draw the violator's attention by any means whatsoever;  
b. Obligate the violating Licensed Financial Institution to take necessary measures and actions that the Central Bank deems appropriate to rectify the violation;  
c. Prevent the violating Licensed Financial Institution from conducting som e operations 
or performing some Licensed Financial Activities, or impose any restrictions, 
conditions or other limitations on practicing all or part of the operations and 
activities;  
d. Impose conditions or restrictions on the license of the violating Licensed Financial 
Institution;  
e. Reduce or suspend the violating Licensed Financial Institution's ability to withdraw 
from the Central Bank's funds through the Standing Facilities;  
f. Obligate the violating Licensed Financial Institution to deposit funds with the Central 
Bank without an interest for the period the Central Bank deems appropriate, in 
addition to the credit balance referred to in article (32) of this Decree -Law;  
g. Impose a fine of four hundred (400) basis poin ts over the prevailing base interest 
rate with the Central bank on any shortfall on the obligatory Reserve referred to in article (32) of this Decree -Law;   
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 h. Request the violating Licensed Financial Institution to return to customers the funds 
obtained from as a result of the Institution's violation of the provisions of this 
Decree- Law. In addition, any excess funds, including income and profits, shall be 
transferred to the Central Bank;  
i. Impose a fine amounting to one (1) to ten (10) times the value of unjust enrichment, 
as determined by the Central Bank, which the violating Licensed Financial Institution 
has illegally acquired as a result of the violation;  
j. Impose a fine of no less th an (AED 2,000,000) two million Dirhams on the violating 
Licensed Financial Institution;  
k. Delink the violating Licensed Financial Institution from one or all Financial 
Infrastructure Systems;  
l. Withdraw the license of the violating Licensed Finan cial Institution and deregister 
the same;  
m. Impose conditions or restrictions on the authorization granted to the violating 
Authorized Person;  
n. Impose a fine of not less than (AED 100,000) one hundred thousand Dirhams and not exceeding (AED 2,000,000) two million Dirhams on the violating Authorized 
Person;  
o. Prohibit the violating Authorized Person from undertaking any of the Designated 
Functions at the Licensed Financial Institution he works for, or at any other Licensed 
Financial Institution.  
p. Any other financial or administrative measures or penalties issued under a decision 
of the Board of Directors. Such decision shall identify the authority authorized to 
impose such penalties or measures.  
2. Penalties provided for  in Clause (1) shall be imposed by virtue of a resolution by the 
Governor, except for the penalty provided for in Clause (l) where it shall be imposed by 
virtue of a decision of the Board of Directors.  
3. In all cases, the violator shall be notified officially of the reasoned decision not later than fifteen (15) business days of the date of said decision. Such notice shall include the following information:   
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 a. Content of the decision;  
b. Reasons for the decision;  
c. Effective date the decision; and  
d. Advising the violator of its right to file a grievance against the decision before the 
Grievance and Appeal Committee, pursuant to the provisions of this Decree -Law.  
  
Chapter Two  
Punishments

Article (138)  
Without prejudice to any more severe punishment provided for in any law, committers of offences referred to in the following Articles shall be punished pursuant to the respective 
punishments stated therein.

Article (139)  
An employee or representative of the Central Bank, any member of the committees formed 
within the Central Bank, or any Board Member who discloses any confidential information 
in breach of provisions of article (26) of this Decree by Law shall be punished b y 
imprisonment for a term not exceeding three (3) months and or a fine not exceeding one hundred thousand Dirhams (AED 100,000).

Article (140)  
Whoever issues Currency in contravention to the provisions of this Decree by Law shall be 
punished by imprisonm ent for a term not exceeding twenty (20) years and/ or a fine not 
exceeding one hundred million Dirhams (AED 100,000,000).

Article (141)  
Whoever intentionally mutilates, destroys or tears up Currency publicly shall be punished by 
imprisonment and a fine that is not less than ten thousand Dirhams (AED 10,000) or one of 
these two punishments.   
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Article (142)  
1. Whoever contravenes the provisions of Clause (1) of article (68) of this Decree by Law 
shall be punished by imprisonment and/ or with a fine not les s than two hundred 
thousand Dirhams (AED 200,000) and not exceeding ten million Dirhams (AED 
10,000,000).  
2. Whoever contravenes the provisions of Clause (2) of article (68) of this Decree shall be 
punished by imprisonment for a term not exceeding six (6 ) months and/ or with a fine 
not less than one hundred thousand Dirhams (AED 100,000) and not exceeding five 
million Dirhams (AED 5,000,000).

Article (143)  
Whoever violates the conditions and restrictions imposed on a licence granted to perform 
Licensed Financial Activities shall be punished with a fine not less than two hundred 
thousand Dirhams (AED 200,000) and not exceeding ten million Dirhams (AED 
10,000, 000).

Article (144)  
Whoever contravenes the Central Bank's instructions regarding imbalance of the balance 
sheet referred to in article (116) of this Decree by Law shall be punished by imprisonment 
for a term not less than one (1) year, and/ or a fine of  not less than one million Dirhams 
(AED 1,000,000) and not exceeding ten million Dirhams (AED 10,000,000).

Article (145)  
Whoever contravenes any of the provisions of Article No. (72) of (96) of this Decree by Law 
shall be punished by imprisonment and/ or  a fine of not less than five hundred thousand 
Dirhams (AED 500,000) and not exceeding ten million Dirhams (AED 10,000,000) Dirhams.

Article (146)  
Whoever contravenes any of the provisions of article (83) of this Decree by Law shall be  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
and Activities  95 
 punished by imprisonment for a term of not less than one (1) year and/ or a fine of not less 
than five hundred thousand Dirhams (AED 500,000) in addition to an extra daily fine of fifty 
thousand Dirhams (50,000) in case of continued breach, which cumulatively may not 
exceed five million Dirhams (AED 5,000,000).

Article (147)  
Whoever commits any of the following violations shall be punished by imprisonment for a term not exceeding two (2) years and/ or a fine of not less than five hundred thousand 
Dirhams (AED 500,000) and not exceeding five million Dirhams (AED 5,000,000):  
1. Provides incorrect or incomplete facts, information, or data included in any statements 
or documents submitted to the Central Bank.  
2. Conceals any fac ts from the statements, information, minutes, papers, or other 
documents submitted to the Central Bank or to representatives, employees, and auditors 
thereof.  
3. Destroys, adjust or modifies any document relating to a matter under investigation by 
the Ce ntral Bank, or sends or causes to be sent out of the State such a document.  
4. Obstructs, resists, or causes the delay of the progress of an investigation by the Central Bank or the furnishing the Central Bank with information.  
5. Connives with another  person to commit any of the acts referred to in Clause (1) 
through (4) of this Article.

Article (148)  
Whoever intentionally discloses the confidential banking and credit information referred to 
in article (120) of this Decree by Law shall be punished by imprisonment and a fine of not 
less than one hundred thousand Dirhams (AED 100,000) and not exceeding five hundred 
thousand Dirhams (AED 500,000).

Article (149)  
1. Where a violation was committed by a legal person, the official in charge of actual 
management thereof shall be punished by the same punishments prescribed for actions  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
and Activities  96 
 committed in violation o f the provisions of this Decree by Law, whenever his awareness 
of the violation is established, or if the violation is a result of his negligence or failure to 
perform his duties.  
2. The legal person shall be responsible jointly with the official in char ge of actual 
management in respect of the imposed financial fines and damages if the violation was 
committed in the name and on behalf of the legal person by one of its employees.

Article (150)  
Whoever commits any of the violations relating to Financial Infrastructure Systems referred 
to in article (130) of this Decree shall be punished by imprisonment and/ or a fine not less 
than one hundred thousand Dirhams (AED 100,000) and not exceeding ten million Dirhams 
(AED 10,000,000).  
  
Part Seven  
General Provisions

Article (151)  
Scope of Application of this Decree by Law  
Provisions of this Decree by Law shall apply to the Central Bank, Licensed Financial 
Institutions, Licensed Financial Activities and persons governed thereby. This Decree by Law 
shall not apply to the Financial Free Zones and the financial institutions regulated by the 
authorities of these zones.

Article (152)  
Statutes in Force to Remain in Force  
Statutes, resolutions, and circulars issued pursuant to the provisions of Federal Law  No. (10) 
of 1980 Concerning the Central Bank, the Monetary System, and the Regulation of the 
Banking Profession, as amended; and Federal Law No. (6) of 1985  Concerning Banks, 
Financial Institutions, and Islamic Investment Companies shall remain in force until the 
statutes, resolutions and circulars which shall replace them are issued within no more than  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
and Activities  97 
 three (3) years from the date of entry into force of this Decree by Law.

Article (153)   
Adjustment of Statuses  
All entities and persons governed by the provisions of this Decree by Law shall adjust their 
statuses in accordance with the provisions of this Decree by Law within the period to be 
specified by the Board of Directors.

Article (154)  
Repealing Conflicting Provisions  
Provisions contravening or conflicting with the provisions of this Decree by Law shall be repealed. Further, Federal Law No. (10) of 1980 Concerning the Central Bank, the Monetary 
System, and the Regulation of the B anking Profession, as amended, and Federal Law No. (6) 
of 1985 Concerning Banks, Financial Institutions, and Islamic Investment Companies shall 
be repealed.

Article (155)  
Fees and Charges  
The Central Bank may impose fees and charges for providing services, and issuing licenses and authorizations, as deemed appropriate, in accordance with the nature and scope of 
functions, activities, and the controls set by the Board of Dir ectors. A decision to this effect 
shall be made by the Board of Directors and shall be published in the Official Gazette and on 
the Central Bank's official website.

Article (156)  
Enforceability of Judgments of Foreign Judicial Bodies  
Judgments and decisio ns issued by foreign judicial and law enforcement authorities in 
respect of national Licensed Financial Institutions and branches of foreign Licensed 
Financial Institutions operating in the UAE shall apply in accordance with applicable legal  
Federal Decree-  Law No. (14) of 2018  Concerning the Central Bank and the Regulation of Financial Institutions 
and Activities  98 
 proceedings of  laws in force in the UAE.

Article (157)  
Interpretation  of the Technical  Terms  Referred  to in this  Decree -Law  
1. If there is any reference in any legislation applicable in the State to the UAE Dirham, 
"Currency", "Cash", "Monetary Funds" or "Fund" or any  similar terminology, this shall 
include the digital currency subject to provisions of this Decree -Law, unless context re-
quires otherwise.  
2. Virtual assets defined in applicable legislations in the State shall not be deemed a cur-
rency subject to provision s of this Decree -Law. Regulations, by -laws and rules issued by 
the Board of Directors shall be applicable to virtual assets and currencies if used as a 
method or instrument of payment or exchange.  
3. The Central Bank may issue a list of interpretation for all technical terminologies stated 
in this Decree -Law and such list shall be published on the official website of the Central 
Bank.

Article (158)  
Date of Entry into Force of this Decree by Law  
This Decree by Law shall be published in the Official Gazette, and shall enter into force on 
the day following the date of its publication.  
  
 
Khalifa Bin Zayed Al Nahyan  
President of the United Arab Emirates  
 
 
 
Issued by us at the Presidential Palace in A bu Dhabi  
Date: 13 th of Muharram 1440 A.H.  
Corresponding to 23 rd of September 2018 A.D.