The Board of Directors of the U.A.E.’s Central Bank has held its 3rd meeting for 2014, under the chairmanship of Khalifa Mohammed Al Kindi, Chairman of the Board.
The Board discussed major subjects proposed to be included in the new banking law currently being developed by the Central Bank. The meeting was attended by Khalid Juma Al Majid, Deputy Chairman, Sultan bin Nasser Al Suwaidi, the Governor, and Board Members, Younis Haji Al Khoori, Khalid Mohammed Salem Balama, Khalid Ahmed Altayer, Hamad Mubarak Bu Amim, and by Mohamed Ali Bin Zayed Al Falasi, Deputy Governor, Saeed Abdullah Al Hamiz, Assistant Governor for Banking Supervision, Saif Hadef Al Shamsi, Assistant Governor for Monetary Policy and Financial Stability and a group of senior Central Bank staff.
The Board reviewed a report on the latest developments concerning the Central Bank Information Technology strategy, which is being carried out by the Boston Consulting Group.
It also discussed a Monetary Policy and Financial Stability Department report on macro-prudential ratios for the banking system/ banking stability and liquidity indicators of the banking sector.
Also touched on was the Banking Supervision Department report on the financial and administrative status of banks and other financial institutions operating in the U.A.E. and instructions were given to take necessary action in this regard.
Earlier in the month The United Arab Emirates (UAE) was the latest country to tighten its anti-money laundering (AML) protections, when the nation’s Federal National Council passed new legislation to punish individuals and companies that conduct illicit transactions and finance terrorism. It will authorise financial penalties of up to Dhs500,000 (£86,000) for institutions found guilty of breaching the law, while individuals could face a similar fine, as well as prison terms of up to ten years,
“significant challenges [remain] around compliance, especially with regard to customer due diligence, transaction monitoring, and politically exposed persons identification”.
The UAE’s new law seeks to clarify money laundering, defining it as “when a person converts, transfers or deposits money with an intent to conceal its illicit origin and when they disguise the source of funds being transferred or deposited.” The legislation also details the duties of the bank’s Anti-Money Laundering and Suspicious Cases Unit and Financial Information Unit. All banks, money changers and other financial institutions operating in the UAE will now have an obligation to report any unusual transactions to the unit. –
In the United Kingdom Bank of England governor Mark Carney backed a plan by Britain’s biggest banks to set up a new body to improve standards in an industry rocked by a string of scandals.
The Banking Standards Review Council (BSRC), funded by, but independent from, the banks, is to be set up this year after banks accepted recommendations from Richard Lambert, a former director general of the Confederation of British Industry
