Central Bank discusses proposed financial and banking regulations for 2014

WAM Abu Dhabi, 21st Dec. 2013 (WAM) — The Board of Directors of Central Bank of the UAE held its 8th meeting for the year 2013 in Abu Dhabi, under the chairmanship of Khalifa Mohammed Al Kindi, Chairman of the Board.

The meeting, attended by Khalid Juma Al Majid, Deputy Chairman, Sultan bin Nasser Al Suwaidi, the Governor, and Board Members, reviewed latest developments regarding the project of assigning a consultative firm the task of preparing a study on Exchange business in the UAE.

The Board also reviewed latest developments regarding a proposal to assign a specialized consultative firm the task of preparing an IT strategy for the Central Bank, and the procedures so far taken in this respect.

The Board reviewed a report on systemic prudential ratios for the banking system, banking stability, and liquidity indicators of the banking sector, submitted by Monetary Policy and Financial Stability Department.

Furthermore, the Board reviewed applications submitted by banks and other financial institutions operating in the UAE for extension of their activities and opening new branches. The Board approved the applications that fulfill the terms and conditions as per the law and regulations applicable to each business activity.

The Board also reviewed the following reports: – Internal Audit Department’s Quarterly Report (Sept. 2013) and The external auditor’s report on the financial statements as at 30 September 2013.

The Board then reviewed list of some of the important projects currently being implemented and are expected to be completed during 2014. Development of these projects would enhance performance and ensure conformity with international standards and best practices Some of these projects: First: In the area of banking supervision: 1- Implementation of the US Foreign Account Tax Compliance Act (FATCA) for individuals subject to US tax laws; 2- Some proposed regulations to be prepared or reviewed during 2014 in the area of supervision of banks and other financial institutions, such as: Outsourcing, Disaster Recovery, banks’ CEOs bonuses, Financial Statements Regulations and Regulations regarding Sharia Compliant Banking Transactions .etc Second: In the area of Monetary Policy Instruments and Reserve Management: Discount Window A Settlement system linked to securities custody Financial stability report.

Third: Establishment of a Virtual Banking System to connect banks to it, which will facilitate achievement of two objectives: – Smart Government on mobile phone – Financial Inclusion Fourth: 1-Establishment of an Economic Research Department at the Central Bank.

2-Establishment of a Risk Monitoring Unit at the Central Bank.

Fifth: Training and career development programs for Central Bank’s staff.

Sixth: The Central Bank’s 2014-2016 Strategic Plan and the Central Bank’s 2014 Operational Plan.

Seventh: 1-Financial Services Law (Framework law) 2- The New Banking Law 3-Law Regarding Criminalization of Money Laundering.

The Board discussed re-printing of new quantities of currency notes of AED100 and AED50 denominations or any other denominations to meet banks’ future demand.

The Board also discussed a memo regarding purchasing of machines for counting, sorting, and packaging of currency notes, and shredding of mutilated ones, at the Central Bank’s head office and Sharjah Branch.

The Board then addressed the remaining items on its agenda and took decisions in respect thereof.


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