UAE launches digital platform to provide accurate data for financial transactions

Breaching the platform's data confidentiality regulations will result in severe penalties, including a minimum two-year prison sentence and a fine of at least Dh50,000

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Web Desk

Published: Fri 22 Nov 2024, 8:51 PM

Last updated: Fri 22 Nov 2024, 11:11 PM

A new digital platform under the name of 'Know Your Customer" (KYC) has been launched in the UAE to provide accurate, comprehensive, and confidential data for financial transactions.

The new platform aims at providing a secure digital infrastructure for verifying customer identities and fostering trust in the business environment and improving the customer experience in accessing financial and banking services.

It also will offer accurate data and information to relevant authorities to enhance transparency in financial transactions and facilitate information exchange and collaboration in combating financial crimes.

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The Central Bank of the UAE will oversee and regulate the operations of a new company which will be established to manage and develop KYC. It will set the regulations under which the company conducts its activities and provides services, as well as establish a code of conduct for data providers and users.

This entity will be responsible for building and overseeing the platform, including managing the collection, storage, analysis, categorization, use, exchange, and sharing of KYC data in accordance with national cybersecurity policies and standards.

The Central Bank will also define the standards for systems used to store, process, and safeguard data, and specify the customer data that the company can request from data providers.

Breaching KYC data confidentiality regulations will result in severe penalties, including a minimum two-year prison sentence and a fine of at least Dh50,000.

These penalties apply to any unauthorized disclosure of customer data or attempts to obtain KYC reports through illegal means or fraudulent information. Misuse of customer data by a public official or an employee of the platform management company is considered an aggravating factor.

"This platform is a key component of the country's strategy to modernize its financial infrastructure, accelerate digital transformation, and establish a unified legal framework for customer identity verification. It enhances transparency, ensures compliance with financial regulations, and strengthens national efforts to combat financial crime," the UAE Government said in a statement.

By adopting cutting-edge digital solutions, the platform provides an integrated mechanism for verifying customer identities and ensuring compliance with regulations. This enhanced transparency in financial transactions, facilitated by the platform's accurate and comprehensive data, empowers users to make informed decisions.

Furthermore, the KYC platform ensures the legal and regulated collection and use of customer data, streamlining information exchange between relevant authorities and bolstering cooperation in combating financial crime.

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Web Desk

Published: Fri 22 Nov 2024, 8:51 PM

Last updated: Fri 22 Nov 2024, 11:11 PM

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