UAE Central Bank initiates public consultation on 'enabling technology' for financial institutions

Abu Dhabi: The UAE Central Bank, the Securities and Commodities Authority (SCA), Dubai Financial Services Authority (DFSA), and the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) have  launched a four-week public consultation on proposed 'guidelines' for financial institutions adopting enabling technologies.

The consultation sets out principles for cross-sectoral services such as banking, insurance, asset management and securities, and best practices for financial institutions when adopting enabling technologies to offer innovative products and services. These include application programming interfaces, big data analytics and artificial intelligence, biometrics, cloud computing, and distributed ledger technology.

These guidelines are to promote the safe adoption of these technologies by financial institutions across the UAE, so that risks arising from the adoption of innovative activities are appropriately managed. In drawing up the guidelines, the regulators have considered both international standards and industry best practices.

The guidelines will apply to all financial institutions licensed and supervised by any of the regulators and who utilise these enabling technologies, irrespective of the financial activities conducted. The guidelines could be issued in the second-half of 2021, subject to the outcome of the consultation.

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