The Central Bank of the United Arab Emirates has issued the Market Conduct Regulation for Small and Medium Enterprises, with the aim of promoting best practices among licensed financial institutions when dealing with small and medium enterprises.
The system aims to enhance the access of these institutions to financial products and services.
The system works to enhance the regulatory agenda of the central bank by setting standards for market behavior for financial institutions, strengthening governance associated with designing, promoting and selling financial products and services, promoting responsible financing practices and appropriate disclosure of risks. In addition, the system provides small and medium enterprises with access to correct, accurate and timely information needed to make informed decisions, applies clear mechanisms to address complaints submitted by small and medium enterprises, and requires appropriate advice on debt.
In addition to the foregoing, financial institutions are required to verify the completion of the process of opening a bank account for small and medium enterprises within 3 working days, provided that the financial institutions take appropriate due diligence measures regarding compliance with requirements related to financial crimes, and ensure that the small or medium enterprise poses risks Low on money laundering or terrorist financing. The system also requires licensed financial institutions to establish an independent and effective complaints management department, in order to ensure fairness, transparency and impartiality in resolving them.
Ensuring the highest business standards
In this context, Abdul Hamid Muhammad Saeed Al-Ahmadi, Governor of the Central Bank of the United Arab Emirates, said: “Small and medium enterprises play a vital role in the growth of the UAE’s economy. The UAE government has paid great attention to developing the ecosystem for small and medium enterprises, and has taken care to remove the obstacles facing the small and medium-sized enterprises sector to make it a transparent, pioneering and innovative sector that enjoys access to financial resources of all kinds. He added: “The Central Bank strives to maintain ensuring that small and medium enterprises enjoy the highest business standards when dealing with licensed financial institutions, in line with our new business mandates for consumer protection. We are fully confident that this system will facilitate the provision of the best products and services to small and medium enterprises. ”