The #UAE’s growing #ESG reporting across major public and private institutions, such because the Ministry of Climate Change and Environment and the #Dubai #Financial Market, demonstrates the country’s dedication to green and #sustainable improvement. In May 2021, the DFSA attended the places of work of Coworth Fintech and Novus Fintech in the DIFC to obtain specified data and documents the DFSA considered related to the investigation. As the only owner and director of the three corporations, Mr Coles instructed individuals present within the workplaces not to permit the DFSA to examine and duplicate the requested info stored on computer systems and different units that had been getting used on the workplaces in the DIFC. Mr Coles didn’t have an inexpensive excuse for his refusal and his failure to adjust to the DFSA’s information-gathering requests obstructed the DFSA investigation. Last yr, the UAE authorities created an Executive Office for Anti-Money Laundering and Counter Terrorism Financing, while Dubai additionally arrange a cash laundering court. DFSA mentioned the agency has by no means been licensed by the DFSA and has by no means had any presence of any type in the Dubai International Financial Centre (DIFC).
As per its website, Paymentology describes itself as a card issuing and processing platform. Venture capital funding for start-ups in the Mena region rose by 20 per cent yearly to more than $2.3 billion within the first three quarters of 2022, putting it on track to doubtlessly surpass the total investments attracted in 2021, in accordance with a Magnitt study earlier this month. There are several actions that would set off this block including submitting a sure word or phrase, a SQL command or malformed information. “All these options make it virtually impossible to determine accurately the holder or beneficial owner of a token or to hint a chain of transactions,” it stated. Privacy tokens disguise, anonymise, obscure or prevent the tracing of the holder of a token, the DFSA said. The DFSA has also restricted Mr Coles from performing any function in reference to the supply of Financial Services in or from the DIFC and prohibited Mr Coles from holding office in or being an employee of any Authorised Person, DNFBP, Reporting Entity or Domestic Fund in the DIFC.
DIFC is the Dubai International Financial Centre, whereas DFSA is the financial regulatory authority within the DIFC. The Dubai International Financial Centre (DIFC) is an onshore financial center which was established in 2004. The Centre is located in Dubai, United Arab Emirates and its mission is to support the development of Dubai as a regional and worldwide monetary hub. Similarly, the future of finance is on the coronary heart of the development of the DIFC, the leading worldwide financial hub within the Middle East, Africa and South Asia (MEASA) area. The DFSA’s regulatory regime relies on rules somewhat than prescriptive rules, which supplies flexibility for fintech corporations to innovate and develop new products and services.
Other present roles include Chairman of Shuaa Capital PSC, and Board memberships at FAB (Suisse) Private Bank SA and Abu Dhabi Development Holding. Published Bimonthly, the Fintech Times explores the explosive world of financial expertise, blending first hand insight, opinion and expertise with observational journalism to provide a balanced and comprehensive perspective of this rapidly evolving industry. WriteCaliber enables busy professionals to remain knowledgeable with personalised news channels on-the-go, delivering a complete view of industry-specific news and developments from a variety of sources.
The Dubai Financial Services Authority (DFSA) is the independent regulator of monetary providers performed in and from the Dubai International Financial Centre (DIFC), a function built financial free zone in Dubai. In addition to regulating financial and ancillary services, the DFSA is answerable for administering Anti‐Money Laundering (AML) and Combating the Financing of Terrorism (CFT) legislation that applies to regulated companies and Designated Non‐Financial Businesses and Professions in the DIFC. The Dubai Financial Services Authority (DFSA) is the unbiased regulator of monetary services performed in and from the Dubai International Financial Centre (DIFC), a purpose-built financial free zone in Dubai. In addition to regulating financial and ancillary providers, the DFSA is liable for administering Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) laws that applies within the DIFC. In addition to regulating monetary and ancillary providers, the DFSA is answerable for supervising and enforcing anti-money laundering (AML) and counter-terrorist financing (CTF) requirements applicable in the DIFC.
The DFSA has additionally accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to research the affairs of DIFC companies and partnerships the place a cloth breach of DIFC Companies Law is suspected and to pursue enforcement remedies out there to the Registrar. The most recent event highlighted the importance of this area and saw demonstrations from seven RegTech providers within the area of cyber risk mitigation, information analysis, transaction monitoring, and eKYC. Cyber danger continues to be a priority for companies across each sector, notably the monetary services business that’s often focused. To foster a safe surroundings for corporations working inside the DIFC, the DFSA launched the Cyber Threat Intelligence Platform (TIP) last yr, the primary regulator-led platform of its sort in the region, creating an data sharing system for corporations within the DIFC. The TIP has over one hundred seventy five registered members and continues to offer them with information about a mean of over one hundred new threats per week.
We will problem a separate consumer alert once the Cabinet of Ministers’ resolutions are issued. The Federal Decree eliminated, with some exceptions, the long-standing requirement for UAE corporations to have a number of UAE sponsoring shareholders holding no much less than 51 percent of the issued share capital of an organization. Mamo raised $8 million for expansion in May 2021 in a funding round led by UAE-based enterprise capital company Global Ventures. It presently offers Mamo Pay for Business, which is geared toward SMEs, and Mamo Pay, a peer-to-peer wallet for customers. The progress of the start-up sector has accelerated in tandem with the increase in digitisation in key sectors similar to finance, retail, services, e-commerce and authorities providers.
Fintech And Wider Monetary Services Regulation With Dubai Monetary Providers Authority
The Dubai Financial Services Authority (DFSA) has issued a public censure against Paymentology Ltd. Al Ansari Financial Services debuts itemizing and trading of its shares on the Dubai Financial Market. The listing marks DFM’s first public offering of 2023 and considered one of first UAE family companies to listing. In April 2021, the DFSA commenced an investigation under the Regulatory Law because it suspected that Coworth Fintech, Novus Fintech and others may have engaged in Financial Service actions in or from the DIFC with out being authorised to do so.
In addition, till no much less than 25 February 2021, Paymentology’s web site incorrectly acknowledged that Paymentology had an workplace within the DIFC. DUBAI, Feb 8 (Reuters) – Dubai’s monetary regulator and India’s International Financial Services Centre Authority (IFSCA) have signed a memorandum of understanding to increase supervision, enforcement and oversight on firms with presence in each jurisdictions. Jonathan Sutcliffe is a companion in the firm’s Dubai office the place he’s a member of the worldwide arbitration follow group.
The DFSA found that, in making these statements, Paymentology disseminated deceptive or misleading data in breach of DFSA administered laws. In particular, by incorrectly claiming that it was licensed by the DFSA and had an workplace in the DIFC, Paymentology was likely to mislead or deceive others into believing that it was authorised by the DFSA to Provide Money Services in or from the DIFC when that was not appropriate. DFSA’s objective is to contribute to the steadiness of the UAE financial system by examining and supervising the monetary actions performed in or from the DIFC.
What Occurred To The Bitcoin Value, Is It The Tip Of The Crypto Boom?
In order to guard and improve the popularity of the DIFC as a worldwide financial center, the DFSA ensures that market individuals adhere to excessive standards of integrity, professionalism, and fair dealing. The DFSA also promotes investor confidence within the DIFC’s financial markets by confirming that they’re properly regulated and supervised. Some states have legal guidelines and ethical guidelines relating to solicitation and commercial practices by attorneys and/or different professionals.
The appointment of a national service agent was a requirement for the registration of a branch or consultant workplace of a international company onshore in the UAE. The improvement of the start-up setting, notably in FinTech, is a high precedence for monetary centres across the area that have launched quite a few programmes to hasten the pace of their enlargement. The approval by the DFSA, the independent regulator of DIFC, follows its transfer to allow Mamo to function within its Innovation Testing Licence (ITL) programme in June 2021, which enabled the company to function in a controlled regulatory environment to test its enterprise model.
This has been useful for the DFSA when it comes to strengthening relationships with partners to collaborate on tackling a common menace. Ken oversees the DFSA’s operational risk, cyber risk, and innovation supervision programmes. To encourage innovation in the DIFC and shield the market in opposition to dangers, the DFSA arrange the Innovation Testing Licence (ITL) Programme. This yr, 26 firms expressed interest within the programme and 17 of those have been asked to submit an application; these are now being reviewed. Applicants embrace firms wanting to provide fee and money transmission services, wealth management, tokenised fee companies, and biometric-enabled financial providers. Expo 2020 will welcome hundreds of thousands of tourists, boosting Dubai’s economic system and affirming Dubai’s place because the regional hub for worldwide companies.
Undertaking this technique evaluation is essential and must be performed in session with the business’s legal advisors prior to initiating any discussions with the UAE counterparty. This exercise will allow the business to consider, from the outset, any potential issues or dangers and mitigate any enterprise disruption or exposure. Central banks all over the world have been reluctant to endorse cryptocurrencies because of their excessive volatility, speculative nature, lack of worth and regulatory oversight.
The DFSA’s mission is to protect and enhance the popularity of the DIFC as a secure and well-regulated financial heart. The changes related to international funding rules underneath the Federal Decree will come into effect by the top of March 2021. The Cabinet of Ministers is anticipated to concern numerous resolutions clarifying certain modifications underneath the Federal Decree.
The DFSA later expanded the investigation to include Coworth Investments which had a trading handle and registered workplace within the UK. The DFSA’s choice could also be confirmed, varied or overturned because of the FMT’s evaluation. The Dubai Financial Services Authority (DFSA) has today printed Decision Notices taking action against Mr Stuart Coles (Mr Coles) and three associated companies of which Mr Coles was the sole proprietor and director.
The Sustainability, Opportunity and Mobility districts at the Expo mirror that the UAE is working to diversify its financial system via non-oil sectors, as a half of its commitment to the UN’s Sustainable Development Goals. Adopting Environmental, Social and Governance (ESG) standards is essential to development, as investors globally are now in search of to invest in firms and in international locations that are clear with their environmental, social and governance practices. The DFSA has been concerned within the work surrounding ESG matters, both within the UAE and in the worldwide area, for over three years.
- The DFSA additionally promotes investor confidence in the DIFC’s financial markets by confirming that they’re properly regulated and supervised.
- In the United Arab Emirates (UAE), the Dubai Financial Services Authority (DFSA) regulates the monetary system.
- A number of laws created the DIFC and the necessary centre our bodies, which embrace the DFSA.
- The DFSA’s regulatory regime relies on rules somewhat than prescriptive rules, which offers flexibility for fintech companies to innovate and develop new services.
- Ken joined the DFSA in April 2012 and has led the supervision of brokerage and buying and selling actions, supervised quite a few banking institutions, and led the restructuring of the DFSA’s supervisory danger model.
- In 2021, the Dubai Financial Services Authority (DFSA) launched an announcement inviting a brand new wave of fintechs to apply for the Innovation Testing Licence (ITL) Programme.
The three corporations are Coworth Fintech Ltd, Coworth Investments Ltd and Novus Fintech Ltd. It has never been licensed by the DFSA and has by no means had any presence of any kind in the Dubai International Financial Centre (DIFC). The Dubai Financial Services Authority (DFSA) has today issued a public censure in opposition to Paymentology Ltd. The DFSA Rulebook units out the DFSA’s necessities for licensed firms, including banks, brokers and sellers, asset managers, company financiers, wealth managers, insurers, and insurance coverage intermediaries. Its vision is to make the DIFC the main financial heart in the Middle East, Africa, and South Asia area.
Any legal analysis, legislative updates or other content and hyperlinks should not be construed as legal or skilled recommendation or a substitute for such recommendation. No attorney-client or confidential relationship is formed by the transmission of knowledge between you and the National Law Review web site or any of the regulation companies, attorneys or different professionals or organizations who embrace content material on the National Law Review website. If you require legal or skilled recommendation, kindly contact an attorney or other appropriate skilled advisor. The DIFC is amongst the region’s most comprehensive FinTech and venture capital environments that will enable it to additional broaden SME-focused providers and merchandise for smaller companies, the company said. However, on 20 October 2020, Paymentology issued a media launch which incorrectly stated that it had been granted a “license to operate” by the DFSA.
Article 121 of the UAE Constitution enabled the Federation to create Financial Free Zones within the Emirates, and most significantly, to exclude the applying of sure Federal legal guidelines in these Financial Free Zones. A number of laws created the DIFC and the mandatory centre our bodies, which embody the DFSA. The DFSA can additionally be proposing to exclude certain tokens — utility tokens, non-fungible tokens and Central Bank Digital Currencies — from its definition of crypto currencies. “These mechanisms usually are not immediately transparent to customers, markets and regulators, and will not allow us to exercise effective oversight and supervision or customers to grasp how the worth is corrected,” it mentioned.
The National Law Review is not a regulation firm neither is meant to be a referral service for attorneys and/or different professionals. The NLR does not want, nor does it intend, to solicit the enterprise of anybody or to refer anybody to an lawyer or different professional. NLR does not reply legal questions nor will we refer you to an legal professional or different skilled when you request such data from us. “We have constructed a monetary services platform that enables both SMEs and consumers to move cash quicker, more efficiently and more securely within the UAE,” stated Imad Gharazeddine, chief govt and co-founder of Mamo. Mamo, a UAE-based FinTech and financial services platform for small and medium enterprises, has received a licence from the Dubai Financial Services Authority (DFSA) to arrange operations inside the Dubai International Financial Centre. It operates only within the special financial zone and is tasked with providing a regulatory environment of international standards.
Meanwhile, algorithmic tokens, similar to Tether, are designed to achieve price stability through balancing the circulating supply of the digital coin by way of behind-the-scenes corrections, the DFSA said. However, underneath the proposed framework, the DFSA will ban suppliers of privacy tokens and devices, and algorithmic tokens from operating in the DIFC. Fadel Abdulbaqi Al Ali was appointed Chairman of the DFSA’s Board in June 2021, having been Deputy Chair from July 2020 to May 2021 and a Board member since 2011. Mr Al Ali is Deputy Group CEO and Chief Operating Officer at First Abu Dhabi Bank, who he joined in 2017. He was previously CEO of Dubai Holdings, a world group with assets of USD 35 billion across 21 international locations and curiosity in 14 financial sectors, who he joined in 2004 after a number of profitable years at Citibank.