Featured Product

    CBUAE to Cease COVID Relief Support, Issues Guide on AML/CFT Screening

    September 23, 2021

    The Central Bank of the UAE (CBUAE) held a meeting that focused on plans for the gradual withdrawal of the extraordinary support measures that were introduced due to the COVID-19 pandemic. This includes the gradual and well-calibrated withdrawal of the Targeted Economic Support Scheme (TESS), the loan deferral component of which is set to expire by the end of 2021. However, the zero cost lending facility may be used to grant new loans until mid-2022. In the short term, CBUAE will leave unchanged the temporarily lowered reserve requirements for banks and the level of the loan-to-value ratio applicable to mortgage loans for first-time home-buyers. Also, the relief measures that allowed banks to maintain lower capital and liquidity buffers are sent to expire by the end of 2021. In a separate release, CBUAE published guidance on transaction monitoring and sanctions screening for the licensed financial institutions, along with a report on typologies in the financial sector.

    The typology report, produced by the Supervisory Authorities Sub-Committee, aims to identify and raise awareness of the emerging risks in the financial sector and to enable the concerned supervisory authorities and financial institutions to remain vigilant and address these risks in a timely manner. A pilot group of financial institutions was selected to identify the unique risks prevalent in the sector and exacerbated by the COVID-19 pandemic. The typologies identified in the report include the risk of money laundering and terrorist financing, fraud, bribery, corruption, charity and disaster fraud, cyber-attacks, and external fraud caused by the COVID-19 pandemic. The report observed that the risks derived from the typologies identified are additional to the risks of crimes related to money laundering and terrorist financing which outlined in the UAE’s National Risk Assessment and are likely to be prevalent across the wider financial sector. Among those risks are an increase in the use of unlicensed money service providers and a heightened risk of cyber-attacks. The report reveals effective methods of mitigation, identification, and resolution implemented by financial institutions, as well as trend analysis of risks observed.

    The guidance on transaction monitoring and sanctions screening aims to promote the understanding and effective implementation by licensed financial institutions of their statutory anti-money laundering and combatting the financing of terrorism (AML/CFT) obligations. The guidance came into effect on September 13, 2021 and requires licensed financial institutions to demonstrate compliance with the requirements within one month from the said date. As stipulated in the guidance, licensed financial institutions should establish and maintain effective transaction monitoring and sanction screening programs consisting of a well-calibrated risk-based framework, training and awareness of their employees and active oversight by their board. In addition, licensed financial institutions should ensure the ongoing enhancement of their transaction monitoring and sanctions screening systems based on their risks. The systems, including the related monitoring and screening models used should be subject to independent testing, validation, and auditing.

     

    Related Links

    Keywords: Middle East and Africa, Banking, COVID-19, TESS, Credit Risk, Regulatory Capital, LTV, AML/CFT, Cyber Risk, Lending, Fraud Detection, CBUAE

    Featured Experts
    Related Articles
    News

    APRA Publishes Results of Climate Risk Self-Assessment Survey

    The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.

    August 04, 2022 WebPage Regulatory News
    News

    ACPR Publishes Updates Related to CRD IV and Covered Bonds

    The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).

    August 03, 2022 WebPage Regulatory News
    News

    BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs

    The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.

    August 03, 2022 WebPage Regulatory News
    News

    EIOPA Publishes Guidance on Climate Change Scenarios in ORSA

    The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).

    August 02, 2022 WebPage Regulatory News
    News

    EBA and ECB Respond to Proposals on Sustainability Disclosures

    The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.

    August 01, 2022 WebPage Regulatory News
    News

    BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks

    A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.

    July 29, 2022 WebPage Regulatory News
    News

    EBA Publishes Multiple Regulatory Updates for Regulated Entities

    The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.

    July 29, 2022 WebPage Regulatory News
    News

    EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 29, 2022 WebPage Regulatory News
    News

    EESC Opines on Proposals on CRR and European Single Access Point

    The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).

    July 29, 2022 WebPage Regulatory News
    News

    HM Treasury Publishes Multiple Regulatory Updates in July 2022

    HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.

    July 29, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8423