A permit to furnish remittance amenities in the UAE is granted pursuant to the novel United Arab Emirates Electronic Payments Ordinances (EPSR), which was embraced comparatively recently by the UAE governance. Below the clauses of the Ordinance, four classifications of remittance utility furnishers may be licensed in the UAE:
- Purveyors of emporium remuneration amenities. This tally encompasses mercantile repositories and sundry alternative remuneration amenity purveyors.
- Miniscule remuneration amenity purveyors that bestow amenities in non-bank markets.
- State-owned enterprises that dispense remuneration amenities;
- Remuneration amenity purveyors that do not admit deposits and that proffer electronic remuneration amenities.
Applying for a PI licence
Acquiring a PSP permission in the UAE is achieved through the UAE Central Bank, situated in Abu Dhabi. The lone anomaly in this instance is for UAE-licensed mercantile banks, which might be sanctioned under a streamlined plan.
Concerning the remuneration structure licensure regimen in the UAE, there are specific requisites pertinent to all quadrants.
Stipulations for acquiring a permit for digital remuneration amenities
The principal prerequisite for an aspirant for a remuneration schema authorization in the Emirates is that the aspirant must demonstrate that their enterprise falls within one of the quadruple delineated classifications above. Furthermore, the aspirant must be situated in the Emirates, or in one of the autonomous regions (the exemption pertains to entities from pecuniary autonomous regions).
It will moreover have to persuade the Central Bank that the petitioner possesses the pertinent acquaintance and proficiency to proffer electronic remittance amenities in the way demanded.
A supplicant for a PSP privilege in the UAE is likewise obliged to fulfill specific minimal pecuniary requisites:
- execute and manifest the presence of potent conformity-affiliated directives;
- syndicate governance configurations and safeguards, akin to an intrinsic scrutiny function..
Among other articles, granting a concern to furnish pecuniary amenities necessitates adherence to consumer enrolment prerequisites, encompassing acquaintance-your-client operations. The concern must additionally satisfy duties directed at thwarting capital washing and deceit, as well as guaranteeing the safeguard and lucidity of dealings.
Among sundry matters, a PSP authorization in the Emirates shall necessitate the execution of specific consumer safeguarding security measures, encompassing:
- finalizing a pact with each utilizer;
- dispensation of patronage aid amenities;
- methodologies for contention redressal.
It is also important to note that a company applying for a PI licence in the UAE will need to comply with data protection and privacy obligations that include, among other things:
- storing transaction records and user data for a minimum retention period (5 years from the date of termination of the relationship with the user), and only within the UAE;
- non-disclosure of users' personal information to third parties.
Confidential information can only be provided to regulators with the authorisation of the central bank or a UAE court order.
Closing remarks
All information provided above is published for informative purposes and should not be taken as legal advice or recommendations for action. Please note that obtaining a payment institution licence in the UAE is a complex process that requires a responsible approach and reliable support.
If you have any questions regarding the need to licence a payment system in the Emirates, IQ Decision's experts are ready to provide comprehensive legal advice on obtaining an Emirates PI-licence.
In addition, our experts provide support services at all stages of obtaining a licence, are ready to help you gather a package of documents for a PSP-licence in the UAE, register a company in the Emirates, and provide other related legal services.
To find out more details about our services, or to book a consultation with a lawyer on licensing of payment institutions in the UAE, you can fill in the feedback form, or contact us right now at the contacts below.
