Latest news with #FederalLawNo.14
Dubai Eye
4 days ago
- Business
- Dubai Eye
Foreign bank penalised for violating UAE regulations
The branch of a foreign bank operating in the UAE has been fined AED 600,000 for failing to comply with market conduct and consumer protection regulations. The penalty follows an inspection by the Central Bank, which found violations of UAE banking standards. The action was taken under Article 137 of the Federal Law No. 14 of 2018, governing financial institutions. Authorities say the move is part of ongoing efforts to uphold transparency and integrity across the country's financial sector.
TAG 91.1
4 days ago
- Business
- TAG 91.1
Foreign bank penalised for violating UAE regulations
The branch of a foreign bank operating in the UAE has been fined AED 600,000 for failing to comply with market conduct and consumer protection regulations. The penalty follows an inspection by the Central Bank, which found violations of UAE banking standards. The action was taken under Article 137 of the Federal Law No. 14 of 2018, governing financial institutions. Authorities say the move is part of ongoing efforts to uphold transparency and integrity across the country's financial sector.
Khaleej Times
21-04-2025
- Business
- Khaleej Times
'Win for consumer rights': UAE court rejects bank's Dh1.3 million claim over missing guarantees
In a landmark decision that sets a powerful legal precedent, the Abu Dhabi Court of Cassation has dismissed a bank's financial claim against a customer due to the absence of valid guarantees, reinforcing consumer protection and the importance of compliance with lending laws. The ruling, issued on April 14, by the Second Commercial Circuit of the Court of Cassation, clarified that banks are not entitled to file debt recovery lawsuits unless proper and legally binding guarantees are in place, as stipulated in Article 121 (bis) of Federal Decree-Law No. 23 of 2022 — an amendment to the Federal Law No. 14 of 2018 governing the Central Bank and financial institutions. The case revolved around a Murabaha agreement (Islamic financing structure) in which a bank demanded more than Dh1.3 million in unpaid dues from a customer. While the Court of First Instance initially dismissed the case, the Court of Appeal later ruled in the bank's favour. However, following a cassation appeal filed by the customer's legal team from Awatif Shoqi Advocates & Legal Consultancy, the Court of Cassation overturned the appellate decision and reinstated the original dismissal, siding once again with the customer. Legal consultant Dr Hasan Elhais, representing the defendant, welcomed the ruling and emphasised its long-term implications. He said: 'This decision reinforces the importance of securing legally sufficient guarantees before granting any lending facility." He clarified that salary transfers — commonly used by banks as informal security — are not considered valid guarantees on their own. 'Unless supported by other binding legal instruments, salary transfers do not fulfil the legal requirement under Article 121 (bis),' Elhais explained. He described the verdict as a major win for consumer rights. 'This precedent provides essential protection for individual borrowers and ensures that banks follow proper legal procedures before filing claims. It's a step forward for financial fairness and transparency.' The ruling sends a strong message across the UAE banking sector: Without proper, documented guarantees that reflect the borrower's financial capacity and the size of the loan, debt recovery claims may not stand in court. 'This is a judicial victory not only for our client, but for all consumers in the UAE who may be exposed to unsecured financial demands,' noted Elhais, adding, 'The law is clear — no valid guarantee, no claim.'
