The UAE has introduced a new digital platform called ‘Know Your Customer’ (KYC) to ensure accurate, secure, and confidential data sharing for financial transactions.
This platform aims to provide a safe and efficient system for verifying customer identities, building trust in the business world, and improving access to financial and banking services.
Enhanced Security and Transparency
The KYC platform will offer reliable and accurate data to authorities, helping improve transparency in financial transactions. It will also support information sharing between entities to strengthen efforts in fighting financial crimes. The platform is part of the UAE’s mission to modernize financial systems and foster digital transformation.
Central Bank Oversight
The Central Bank of the UAE will regulate the platform through a new company tasked with managing and developing KYC operations. The bank will set rules for how the platform operates, including a strict code of conduct for users and data providers.
This entity will oversee key responsibilities like collecting, storing, analyzing, categorizing, and sharing KYC data while following national cybersecurity policies. It will also define the types of customer data the platform can request and establish security standards for data storage and processing.
Strict Confidentiality and Penalties
The platform will ensure strict confidentiality for customer data. Violating these regulations will lead to severe penalties, including a minimum two-year prison sentence and a fine of at least Dh50,000.
These penalties apply to unauthorized disclosures, illegal attempts to access KYC reports, or misuse of customer data, particularly by public officials or platform employees.
A Modernized Financial System
In a statement, the UAE Government emphasized the platform’s role in transforming the country’s financial systems. It aims to create a unified legal framework for customer identity verification while improving transparency and compliance with financial regulations. By adopting advanced digital solutions, the KYC platform ensures safe and efficient identity verification, enabling users to make well-informed decisions.
Streamlining Cooperation Against Financial Crime
The KYC platform simplifies the exchange of information between authorities, boosting collaboration in combating financial crimes. With secure and regulated data collection, the platform not only strengthens compliance but also enhances trust in the UAE’s financial system.
