15 January 2019
As noted in our earlier briefing, Federal Law No. 14 of 2018 on the Central Bank and Organisation of Financial Institutions and Activities (the "New UAE Banking Law") came into force in the United Arab Emirates (the "UAE") on 30 September 2018.
The New UAE Banking Law repeals two of the UAE's older banking laws. The first of these is Federal Law No. 10 of 1980 concerning the status of the Central Bank of the UAE (the "UAECB") and its roles managing the currency and supervising the activities of banks and finance companies (the "1980 Banking Law"). The second of these is Federal Law No. 6 of 1986 in relation to Islamic banking activities. Whilst this is a fundamental re-writing of the statutory scheme for banking in the UAE, the powers conferred upon the UAECB by the New UAE Banking Law are being used to maintain existing UAECB regulations and circulars, promulgated under the previous banking laws, until such time as they are replaced in the three year period ending 29 September 2021.