The UAE Central Bank is expected to issue new rules and regulations for banks and financial institutions in the region in the coming months of 2014. They are mainly related to anti-money laundering (AML), Shariah banking, financial statements, disaster recovery, FATCA compliance and virtual banking systems. In addition, the UAE witnessed the establishment of a Dubai Islamic Economy Development Centre in December 2013.

According to the directors of the CB, these bank rule changes and proposals will be in place with the aim of enhancing the performance of credit institutions and to ensure that conformity with international standards and best practices are adhered to. The most prevalent laws, regulations and proposals include a new AML law and the introduction of a financial services law. Furthermore, the US Foreign Account Tax Compliance Act (FATCA) was approved and the FATCA implementation project for all the institutions throughout the UAE will also take place this year. Under FATCA, credit institutions with accounts or structures belonging to US nationals in the UAE will be bound to make disclosures to the US Inland Revenue Service (IRS) in order to eliminate tax abuses. For additional security, the UAE region will be launching an economic research department along with a risk monitoring unit.

The introduction of a virtual banking system is another 2014 objective of the CB. This should facilitate financial inclusion and other smart government systems on smartphones. Finally, the CB is undergoing debates on whether to introduce a new discount window. The new settlement system is linked to securities custody and financial stability in the field of monetary policy instruments and reserve management.

Another development in the UAE region includes the setting up of a Dubai Islamic Economy Development Centre with the aim of turning the Emirate into an Islamic finance global capital. The Centre will be built on the foundation of three objectives: to include the promotion of economic activities compatible with Islamic law, to promote Dubai as a hub for Shariah-compliant goods and services and to build an extensive database with, and encourage recourse to arbitration in, Islamic economic activities. Under the 2013 law (No. 42) the Centre will have legal, financial and administrative independence. A system of endorsing products’, commodities’ and services’ compatibility with the Centre’s standards will be created in order to issue their necessary certificates.