UAE Regulators Unveil Guidelines for Banking Industry’s Adoption of Enabling Technologies
Abu Dhabi, UAE - November 15, 2021
The United Arab Emirates (UAE) regulatory authorities have jointly issued guidelines to promote safe and sound innovation in the banking industry. The Central Bank of the UAE (CBUAE), Securities and Commodities Authority (SCA), Dubai Financial Services Authority (DFSA), and Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) published the “Guidelines for Financial Institutions Adopting Enabling Technologies” to provide a framework for banks and other financial institutions to adopt emerging technologies.
Guideline Objectives
The guidelines aim to promote proactive risk management by financial institutions when adopting innovative activities. The regulators have considered international standards, industry best practices, and feedback from market participants during a public consultation launched in June 2021.
Enabling Technologies Covered
The guidelines cover the adoption of the following enabling technologies:
- Application Programming Interfaces (APIs)
- Big Data Analytics
- Artificial Intelligence (AI)
- Biometrics
- Cloud Computing
- Distributed Ledger Technology (DLT)
Regulatory Framework
The guidelines will apply to all financial institutions that are licensed and supervised by any of the regulators and utilize enabling technologies, regardless of their financial activities.
“These guidelines will help licensed financial institutions adopt technologies that enable modern financial services and promote innovation,”
— Saif Al Dhaheri, Assistant Governor - Strategy, Financial Infrastructure and Digital Transformation at the CBUAE
Enhancing Risk Management
The guidelines will encourage enhanced proactive management of the risks of innovative activities.
“Undoubtedly, these guidelines enhance the safe and proper adoption of enabling technologies by financial institutions operating in the UAE’s financial sector,”
— Dr. Maryam Buti Al Suwaidi, CEO of SCA
Industry Response
Industry leaders welcomed the guidelines as a step towards promoting innovation while ensuring regulatory compliance.
“Finance has long drawn on the latest technology, now more so than ever,”
— F. Christopher Calabia, Chief Executive of DFSA
Modern financial institutions need their technology to be robust and resilient. These guidelines will help financial institutions provide best practices on how to manage and mitigate risks arising from the use of innovative technologies.
“Modern financial institutions need their technology to be robust and resilient,”
— Emmanuel Givanakis, CEO of FSRA at ADGM