By adopting cutting-edge digital solutions, the platform provides an integrated mechanism for verifying customer identities and ensuring compliance with regulations.
This enhanced transparency in financial transactions, facilitated by the platform’s accurate and comprehensive data, empowers users to make informed decisions.
Furthermore, the KYC platform ensures the legal and regulated collection and use of customer data, streamlining information exchange between relevant authorities and bolstering cooperation in combating financial crime.
Pursuant to the Decree-Law, a new company will be established in the UAE to develop and manage the KYC platform, possessing the legal authority to conduct its operations.
This entity will be responsible for building and overseeing the platform, including managing the collection, storage, analysis, categorization, use, exchange, and sharing of KYC data in accordance with national cybersecurity policies and standards.
Additionally, the company will issue KYC reports as stipulated by the Decree-Law’s executive guidelines and collaborate with data providers to streamline KYC data acquisition, among other relevant duties.
The Decree-Law establishes a strict legal framework for safeguarding customer data, permitting disclosure only under specific conditions. All involved parties are obligated to protect this data from loss, damage, and unauthorised access, requiring prior customer or legal entity approval for any data use or sharing.
Customers also have the right to access their KYC report details, as outlined in the executive regulations or guidelines issued by the Central Bank.
Breaching KYC data confidentiality regulations will result in severe penalties, including a minimum two-year prison sentence and a fine of at least AED50,000 ($13,600).
These penalties apply to any unauthorised disclosure of customer data or attempts to obtain KYC reports through illegal means or fraudulent information.
Misuse of customer data by a public official or an employee of the platform management company is considered an aggravating factor.
The Central Bank of the UAE will oversee and regulate the operations of the company managing the (KYC) platform. It will set the regulations under which the company conducts its activities and provides services, as well as establish a code of conduct for data providers and users.
The Central Bank will also define the standards for systems used to store, process, and safeguard data, and specify the customer data that the company can request from data providers.
Recent Comments