The UAE government launches the “Know Your Customer” digital platform

The UAE government launched the “Know Your Customer” digital platform to provide comprehensive, accurate and confidential data in financial transactions in accordance with the best international standards, as part of the country’s efforts to enhance the integration of the financial infrastructure and accelerate digital transformation, and with the aim of creating an integrated legal framework that ensures verification of customers’ identity and enhances Among the requirements for transparency and compliance with applicable financial legislation and regulations, as well as supporting efforts made to combat financial crimes in the country.

This came pursuant to the issuance of Federal Decree Law No. 30 of 2024 regarding the establishment of the “Know Your Customer” digital platform, which represents an important step in supporting the national economy by providing a secure infrastructure to verify customers’ identity, enhancing confidence in the business environment and financial system in the country, and consolidating competitiveness. The UAE’s global reach in the field of financial technology by adopting advanced technical solutions that meet the needs of users from financial, banking and insurance entities and contribute to establishing a safe and sustainable economic environment.

Strengthening the leadership of the banking sector in the country

The platform constitutes a qualitative step in the efforts aimed at strengthening the leadership of the banking sector in the UAE and consolidating its position among the best banking sectors in the world, by adopting the latest digital solutions, as the “Know Your Customer” platform provides an integrated digital mechanism to verify the identity of customers and the extent of their compliance with applicable legislation.

The platform aims to integrate the latest technologies into banking operations, accelerate the process of digital transformation in the country, in addition to enhancing transparency in financial transactions by providing accurate and comprehensive data and information to users, which contributes to making the necessary financial decisions, and ensuring legal regulation of the collection and use of customer data in a way that leads to To facilitate the exchange of information between concerned parties, and enhance cooperation in confronting financial crimes

Establishing a company to create and manage the “Know Your Customer” platform.

In implementation of the provisions of the aforementioned Decree-Law, a company will be established to establish and manage the “Know Your Customer” platform, and it will have the legal personality and legal capacity necessary to carry out its activities and implement the powers assigned to it, including: establishing and managing the platform, and organizing the processes of collecting, preserving, analyzing, classifying, using, trading and exchanging “Know Your Customer” data. “Your Customer” in accordance with the cybersecurity policies and standards in the country, and issuing a “Know Your Customer” report in accordance with the controls that will be specified by the executive regulations of the Decree-Law, And agreeing with the data provider to organize the process of obtaining “Know Your Customer” data, and other powers related to this matter

Data protection and customer privacy controls

The provisions of the Decree-Law stipulate the definition of a strict legislative framework to protect customer data, as “Know Your Customer” data is considered confidential in nature, and may not be disclosed except in accordance with the provisions contained in the aforementioned decree, and all concerned parties are committed to protecting this data from loss, damage, or unauthorized access. Authorized for the data, it is required to obtain prior approval from the customer or the relevant legal authorities before any process of using or trading the data. The customer also has the right to view the details of his “Know Your Customer” report, in accordance with the controls specified by the regulations. Executive or issued by the Central Bank in this regard

Strict penalties will be imposed on anyone who violates the provisions regulating the confidentiality of “Know Your Customer” data, with penalties reaching imprisonment for a period of not less than two years and a fine of not less than 50,000 dirhams. These penalties will be applied to anyone who discloses customer data outside the specified legal framework, or Attempts to obtain a KYC report illegally or using false information. Misuse of customer data is also considered an aggravating circumstance if the perpetrator is a public employee or an employee of the company responsible for operating the platform.

Governance and supervision of the “Know Your Customer” platform

The Central Bank of the United Arab Emirates, in its capacity as the competent regulatory authority, is responsible for monitoring and supervising the proper performance of the company operating the platform, setting controls under which the company carries out its activities and providing services and what is related to them, and developing and issuing rules of conduct that apply to the data provider and the user. The Central Bank is also responsible for setting controls and specifications for the systems used to store, process and protect data, and specifying data and information related to the customer that the company can request from data providers.