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Financial Institutions in UAE Get Guidelines on Managing Risk with Emerging Technologies
Abu Dhabi/Dubai, November 15, 2021: Central Bank of UAE Issues Guidelines for Safe Adoption of Enabling Technologies
The Central Bank of the United Arab Emirates (CBUAE), along with other regulatory authorities, has issued guidelines for financial institutions to manage risks associated with emerging technologies such as artificial intelligence and blockchain. The guidelines aim to promote safe and sound adoption of enabling technologies by financial institutions in the UAE.
Guidelines Published on Monday
The use of these technologies is becoming increasingly common in the financial sector, but it also poses significant risks if not managed properly. According to the guidelines, financial institutions must ensure that they have robust risk management systems in place before adopting emerging technologies such as:
- Application programming interfaces (APIs)
- Big data analytics
- Biometrics
- Cloud computing
- Distributed ledger technology
Promoting Safe and Sound Adoption of Enabling Technologies
“We want to encourage licensed financial institutions to adopt modern technologies that enable innovative financial services while ensuring the risks associated with these innovations are properly managed,” said Saif Al Dhaheri, Assistant Governor-Strategy at the CBUAE.
The guidelines were developed in collaboration with other regulatory authorities in the UAE, including:
- Securities and Commodities Authority (SCA)
- Dubai Financial Services Authority (DFSA)
- Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM)
Essential Guidelines for Safe Adoption
“We believe that these guidelines are essential to ensure that financial institutions in the UAE adopt emerging technologies in a safe and sound manner,” said Dr. Maryam Buti Al Suwaidi, CEO of SCA.
The guidelines will apply to all financial institutions licensed and supervised by any of the regulatory authorities mentioned above, regardless of the type of financial activities they conduct.
Providing Best Practices for Risk Management
Financial Services Regulatory Authority (FSRA) at ADGM, Emmanuel Givanakis, said that the guidelines are designed to provide best practices on how to manage and mitigate risks arising from the use of innovative technologies. “By following these guidelines, financial institutions will be able to better serve their customers while ensuring the stability and security of the financial system,” he added.
Downloading the Guidelines
The guidelines can be downloaded from the websites of the regulatory authorities mentioned above.