UAE impose new laws to improve banking sectors
UAE regulators have imposed laws to boost the Banking and Finance Sectors. Aftermath the Global financial crisis in 2008, the regulators are more careful of writing laws for the banking sectors. Every corners and section are carefully designed in order to improve the efficiency in the financial sector. The transaction methods, use of finance and economy is rapidly changing with demanding the regulators to impose rules for the developing areas of the Banking and Finance. The changes from the law regulations intended to bring more clarifications on banking and financial sectors as well as growth in the economy. The new law came to existence a few weeks ago with changes including in following areas:
Public debt law.
Anti-Money Laundering Law.
Central Bank Law.
Netting law and more.
One of the highlighting parts of the amendment is the updated regulations on Anti-money laundering. The UAE has become the financial hub in the Middle East. With the emerging market and improvement in the financial sector, there are downsides which include the use of illegally obtained money for the purpose of business and other activities. Regulators in the UAE are more active in watching and monitoring the activities related to money laundering. The new amended laws intent and strengthen the position of Counter Financing of Terrorist operations and suspicious organizations.
The UAE economy also aims to move towards an economy away from the oil income. The Middle East countries are rich and well known for the income from the Oil and Gas industries. Many companies are established their foundation with related to oil and gas industries. However, the economy is improving in the non-oil sectors as well. The regulators have proven their support for the raising other sectors with the recent development in the Law. Improving the small sectors will help the financial market in general for the coming decades.
The recent introduction of Federal Law No. 10 of 2018 is a good example of improvement in netting. The new law on netting expected to lead to a reduction in credit and settlement risk while improving the regulatory procedures for the same. Also, the law provides the option to buy government bonds for the UAE banks. With the rapid improvement in the Banking and Finance Sector, the UAE legislators have intent to see an improvement in the economy in coming years.