Bank AI

In response to the evolving landscape of consumer financial preferences globally, the Central Bank of the UAE (CBUAE) has taken a proactive step by unveiling an amended Finance Companies Regulation. 
This strategic move aims to cater to the surging demand for “Buy-Now, Pay-Later” and analogous credit products and services. 
The revised framework marks a significant shift in how short-term credit provision will be managed within the UAE. Entities seeking to engage in this sphere can now operate as agents of licensed banks or finance companies, subject to approval by the CBUAE. 
Additionally, these entities have the opportunity to conduct such activities upon obtaining licenses as Restricted License Finance Companies directly from the CBUAE. 
A notable inclusion within the new regulatory framework pertains to unlicensed entities currently involved in short-term credit activities. To ensure compliance and continuity in their operations, these entities are presented with two distinct pathways: either apply to the CBUAE for a license as a Restricted License Finance Company or establish partnerships with licensed finance companies or banks. 
This move by the CBUAE showcases a forward-thinking approach to adapting to the changing demands of consumers in the financial realm. The shift towards facilitating the provision of short-term credit through licensed entities aligns with the broader global trend of enhancing financial inclusivity while ensuring regulatory oversight and consumer protection. 
As financial landscapes continue to evolve and consumer preferences drive innovation in financial products and services, regulatory bodies around the world are tasked with striking a delicate balance between fostering innovation and safeguarding consumer interests. The CBUAE’s proactive stance in amending the Finance Companies Regulation underscores its commitment to maintaining a robust and adaptive financial ecosystem within the UAE. 
This regulatory amendment is anticipated to not only streamline short-term credit provisions but also bolster consumer confidence in financial services by ensuring that all entities engaged in these activities adhere to a standardized and regulated framework. 
The introduction of the amended Finance Companies Regulation marks a pivotal moment in the UAE’s financial landscape, signifying the regulator’s dedication to proactively respond to the evolving needs and demands of consumers while upholding the integrity and stability of the financial sector. 
More information <a href="https://rulebook.centralbank.ae/en/rulebook/finance-companies-regulation-0" class="ek-link">here</a>. 
The post <a rel="nofollow" href="https://www.unlock-bc.com/115004/cbuae-issues-new-regulations-for-enhanced-governance-in-finance-companies/">CBUAE Introduces Revised Finance Regulation to Accommodate ‘Buy-Now, Pay-Later’ Demand</a> appeared first on <a rel="nofollow" href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

CBUAE Introduces Revised Finance Regulation to Accommodate ‘Buy-Now, Pay-Later’ Demand

UNLOCK_ENG

Other articles published on Dec 27, 2023

Ethereum Price Hints At Potential Correction, Buy The Dip?

Solana New Year Price Prediction: How High Can SOL Go?

Congressman calls for Gary Gensler removal, SEC accountability in 2024

CAKE Price Jumps 21% To Cross $3.50, Can Buyers Reclaim $5?

What Has the Sentiment for Crypto Been Like Over Christmas?

Starbucks Unveils Costa Rica Trip for Top Odyssey NFT Holders

Join our free newsletter for daily crypto updates!