UAE Unveils KYC Platform For Enhanced Financial Data
|Breaching KYC data confidentiality regulations will result in severe penalties, including a minimum two-year prison sentence and a fine of at least AED 50,000.
The UAE government has introduced the "Know Your Customer" (KYC) digital platform to provide accurate, comprehensive, and confidential data for financial transactions. The platform is a major component of the UAE's strategy to modernize its financial infrastructure, accelerate digital transformation, and establish a unified legal framework for customer identity verification.
By providing a secure framework for verifying customer identities, the latest platform fosters greater trust in the country's business and financial systems. The KYC platform ensures the legal and regulated collection and use of customer data, streamlining information exchange between relevant authorities and enhancing cooperation in combating financial crime.
Emirates News Agency reported that breaching KYC data confidentiality regulations will result in severe penalties, including a minimum two-year prison sentence and a fine of at least AED 50,000. These penalties are applicable to any unauthorized disclosure of customer data or attempts to obtain KYC reports through illegal means or fraudulent information. Misuse of customer data by a public official or an employee of the platform management company is considered an aggravating factor. At the same time, the Central Bank of the UAE will oversee and regulate the operations of the company managing the KYC platform. It will set the regulations under which the company conducts its activities and provides services, as well as establish a code of conduct for data providers and users.