Current and Saving Accounts

1. 5.1.2.1Opening Accounts:
   1. a.Commercial banks can open all types of accounts for their retail Consumers, but in such cases, they must abide by the Consumer Protection Regulation and the accompanying Standards;
   2. b.Accounts must be opened within 2 complete business days from the date of application except as noted as follows. An exception is provided where the Licensed Financial Institution is acting accordance with UAE’s Financial Crime Compliance requirements. Where other valid circumstances require additional time to allow the account to function, the Licensed Financial Institution must explain the delay to the Consumer and document the reason for the delay. The account may still be opened and the low risk Consumer may be provided with the account number, however, the account may have limited transactions until the circumstances or the lack of certain documentation causing the delay are resolved. Licensed Financial Institutions may refuse to open an account when the Licensed Financial Institution has reasonable and justifiable grounds;
   3. c.When a Licensed Financial Institution refuses to open an account, it must provide a written notice to the Consumer immediately stating that the application to open an account has been refused and that the Consumer may file a Complaint with the Central Bank or any other relevant or delegated authority. The Licensed Financial Institution must internally document the specific reason for refusal for review by the Central Bank;
   4. d.Licensed Financial Institutions must develop risk-based policies and procedures for account opening for Consumer accounts and in applying Know Your Customer (KYC) requirements. Such risk based policies and procedures should provide for account opening with limited features and Permissible transactions for low risk Consumers. Limitations may include limits on the number of transactions, the amount and types of transactions, prohibit transfers, remittances, use of cheques, etc. Licensed Financial Institutions must use their internal controls and monitoring to mitigate risks in account openings for Consumers; and
   5. e.Licensed Financial Institutions must inform a Consumer of the requirements and procedures to open and operate a bank account. As part of the process, Licensed Financial Institutions must disclose to the Consumer all Fees that would be applied and ensure that Consumers are fully aware of the consequences of granting third parties access to their bank accounts, cheques or debit cards.
2. 5.1.2.2Account closure by the Licensed Financial Institution:
   1. a.Licensed Financial Institutions must inform Consumers in Writing of their decision to close a Consumer’s account 60 calendar days in advance of the account being closed;
   2. b.The Licensed Financial Institution must provide in Writing, the reasons for the closure except where the Licensed Financial Institution has suspicion as to the use of the account by the Consumer to carry out financial crimes; and
   3. c.An exception is provided where the Licensed Financial Institution is acting accordance with UAE’s Financial Crime Compliance requirements.
3. 5.1.2.3Account blockage:
   1. a.A Licensed Financial Institution must not block a Consumer’s account, block debit and/or credit transactions; hold funds or remove certain privileges for reasons other than the following or otherwise prescribed by the Central Bank:
      1. i.The Licensed Financial Institution may block the Consumer’s account privileges and funds when the Licensed Financial Institution is acting in accordance with Central Bank’s request and/or relevant UAE laws and Regulations. (refer to Article 6.2.1.5). Licensed Financial Institutions must maintain detailed records of such events for review by the Central Bank;
      2. ii.The Licensed Financial Institution may block the account, a privilege on an account or a determined amount of funds in a Consumer’s account for a set period of time in the following scenarios:
         1. oA court order served on the Licensed Financial Institution to block the account and/or a defined amount;
         2. oUpon instructions from the Central Bank;
         3. oRecovery of amount of funds owed to the Licensed Financial Institution by the Consumer relating to credit facilities and/or unpaid Fees;
         4. oEvidence that a Consumer has acted dishonestly, fraudulently, or is convicted of a crime; or
         5. oEvidence that the Consumer has died.
   2. b.When a Licensed Financial Institution blocks the use of a Consumer’s account, or blocks all or a defined amount of funds, or suspends certain privileges on an account, the Licensed Financial Institution must provide a written notice to the Consumer within 24 hours to inform the Consumer of the blockage details, the action the Consumer is expected to take and the contact information for the Licensed Financial Institution regarding the blockage. This provision is not applicable in instances when Licensed Financial Institutions have a reasonable basis of considering the transaction is related to risks of financial crime or as may be prohibited by law;
   3. c.The Licensed Financial Institution must not:
      1. i.Apply any account related Fees to a Consumer account that will result in an overdraft in the account while it is being blocked, including returned cheques Fees caused as a result of the blockage by the Licensed Financial Institution. Once the blockage has been removed, such fees may be collected and the Consumer informed;
      2. ii.Block an amount of funds greater than the actual outstanding liability owed to the Licensed Financial Institution by the Consumer at the time of the blockage; and
      3. iii.Block funds from a Consumer’s end of service payment for repayment/payment of a Consumers’ mortgage loan/financing.

Digital Instruments

1. 5.1.2.4Where there is an expiry date associated with a Digital Instrument product that stores or uses digital money, the Licensed Financial Institution that has issued the product must continue to provide a method of access to those funds and to safeguard any remaining balance of funds on behalf of the Consumer.

Debit Cards

1. 5.1.2.5Licensed Financial Institutions can issue debit cards in a secure manner that are linked to any type of accounts. They may charge approved Fees for issuance of new cards, replacement of lost cards or renewal of expired cards. However, they must disclose these Fees in the manner specified in Article 2: Disclosure and Transparency.
2. 5.1.2.6Licensed Financial Institutions cannot issue the Consumer’s initial debit card without expressed consent from the Consumer. Licensed Financial Institutions cannot issue a replacement for a lost or stolen debit card unless authorized by the Consumer. A replacement card can be issued automatically to the Consumer due to the expiry date of the current card or as agreed to by the Consumer. If the Licensed Financial Institution must issue new cards due to its own procedural changes, then the Consumer must be provided with a separate and advanced notice in Writing.
3. 5.1.2.7Licensed Financial Institutions must ensure that cards are issued and delivered to the Consumer named on the card, or to an authorized Persons as approved by the Consumer.
4. 5.1.2.8Licensed Financial Institutions must obtain the Consumers approval of the daily transaction limits that apply to the debit card for use with Automated Teller Machine (ATM) and Point of Sale (POS) transactions at time of issuing of the initial card or the reissuing of cards. If the Licensed Financial Institution has decided to reduce the limit of the Permissible daily transactions or the terms and conditions of the card, the Licensed Financial Institution must provide 60 calendar days’ notice in Writing to the Consumer and explain the change and what Consumers can do if they do not agree.

Automated Teller Machines and Point of Sale

1. 5.1.2.9Licensed Financial Institutions must fully investigate problems, Complaints and claims from Consumers, regarding incorrect transactions or any difficulties encountered when using any ATM or POS and where appropriate take corrective action:
   1. a.In relation to provision of POS products or services, Licensed Financial Institutions must monitor whether the merchant clients impose any additional and unauthorized Fees onto Consumers when they use the Licensed Financial Institutions’ card/digital payment methods for the purchase of goods or services from the merchants; and
   2. b.Licensed Financial Institutions must monitor for evidence of fraudulent use of ATMs and POS Terminals. Proof of the monitoring must be documented for review by the Central Bank. Where there is evidence of tampering with an ATM or POS Terminal, a Licensed Financial Institution must review its records and related Consumer Complaints for possible identification of past transactions previously deemed authorized transactions that need to be reversed due to the evidence of tampering.