The Central Bank of the United Arab Emirates has issued an official notice addressed to all licensed financial institutions in the country. This notification stresses the importance of ensuring that all entities leasing their bank identification numbers (BINs), as well as those sub-leasing, possess the required authorisation or license from the Central Bank to engage in related licensed financial activities.
Compliance with Central Bank Regulations
The Central Bank has observed that some licensed financial institutions are renting or permitting the sub-leasing of their bank identification numbers to entities engaged in licensed financial activities without securing the necessary approvals or licenses from the regulatory authority.
Obligations for Financial Institutions
In light of this situation, the Central Bank has mandated that licensed financial institutions take the necessary steps to exercise due diligence and ensure that any companies utilising their bank identification numbers are appropriately licensed. Furthermore, they are required to report any such instances to the Central Bank within 20 business days from the date of this notification.
Consequences of Non-Compliance
The Central Bank has made it clear that failure to comply with any of the requirements outlined in the notice may result in regulatory or administrative action, including financial penalties, based on the discretion of the Central Bank.