Abu Dhabi: The UAE government has unveiled the “Know Your Customer” (KYC) digital platform, an initiative designed to enhance transparency, compliance, and security in financial transactions while fostering the nation’s economic stability and global fintech leadership.
The platform, launched under Federal Decree-Law No. 30 of 2024, is a cornerstone of the UAE strategy to modernize its financial infrastructure and accelerate digital transformation.
It aims to streamline customer identity verification, ensuring comprehensive, accurate, and confidential data management for financial institutions.
The KYC platform provides a secure, unified framework for verifying customer identities, enhancing trust in the UAE’s financial and business ecosystems. Its integration of advanced technological solutions benefits the financial, banking, and insurance sectors, promoting a stable and sustainable economic environment.
UAE Government launches KYC digital platform for enhanced financial data pic.twitter.com/pcZRwi4lTj
— UAEGOV (@UAEmediaoffice) November 22, 2024
By adopting cutting-edge digital solutions, the platform positions the UAE’s banking sector among the world’s leaders. It ensures compliance with financial regulations, facilitating transparency and informed decision-making for users by providing accurate and reliable data.
A new entity will be established to develop and manage the platform, equipped with legal authority to oversee data collection, storage, analysis, and sharing in line with UAE cybersecurity standards. This entity will issue KYC reports, collaborate with data providers, and ensure adherence to the executive guidelines of the Decree-Law.
The law mandates stringent data protection protocols, allowing disclosure only under specific conditions and requiring prior customer consent for data use or sharing. Customers also have the right to access their KYC report details, as outlined by the Central Bank’s regulations.
To safeguard confidentiality, the law enforces severe penalties for breaches. Unauthorized disclosure or misuse of KYC data may result in a minimum two-year prison sentence and fines of no less than AED 50,000 ( $13,610).
The Central Bank of the UAE will regulate and supervise the platform’s operations, setting standards for data management systems and establishing a code of conduct for data providers and users. It will also define the scope of customer data collection, ensuring robust compliance and security.