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Khaleej Times
20-04-2025
- Business
- Khaleej Times
UAE: Can residents continue using bank account after visa cancellation?
Question: My husband lost his job recently, and as per the rules, he has 30 days to leave the country. If his work visa is cancelled, can he continue using his bank account? He is currently looking for another job, and we would want to keep the same account. Answer: Based on the information provided and the applicable regulations in the UAE, the cancellation of a residency visa does not automatically lead to the freezing or closure of a bank account. Additionally, an account is not considered dormant if the customer's address is known or if they are actively using a bank account (s). Dormancy of accounts is governed solely by the UAE Central Bank regulations. This is under Article 9 (d) of the UAE Central Bank Regulation No. 29/2011 (dated February 23, 2011) on Regulations Regarding Bank Loans & Other Services Offered to Individual Customers, which states: 'None of the opened accounts can be considered 'dormant' if the customer's address is known or if the customer is present and has other active accounts with the bank. Accounts are classified as dormant only in accordance with the provisions of these regulations issued by the Central Bank in this regard.' An individual's bank account may be listed as a 'dormant account' in the UAE in accordance with UAE Central Bank Circular No.1/2020 (dated January 15, 2020) on Dormant Accounts. An account may be classified as dormant only if it has had no financial or non-financial activity for three years, and there has been no communication from the account holder. This is in accordance with Article 2 (1) (1) of the UAE Dormant Bank Account Regulations, which states: 'Criteria for Determining Dormant Accounts and Unclaimed Balances: An individual/corporate savings or call or current account where there have been no transactions (withdrawals or deposits) or non-financial actions (service requests, due diligence, particulars, update, etc.) for a period of 3 years from the date of the last transaction on the account, other than transactions initiated by the bank (such as interest and charges posted by the system or manually), and there has been no communication from the customer (whether written or electronic).' Therefore, based on the standard banking practices in the UAE and the legal provisions mentioned, your husband can still continue using his bank account after his visa is cancelled, as long as he keeps the account active and maintains communication with the bank. However, due to the change in residency status, the account may be classified as a non-resident account, which could be subject to different terms, conditions, or requirements. This does not necessarily result in the immediate freezing or closure of the account. It would be advisable to inform your bank that he has lost his employment, and he will be back in UAE on a new employment visa.
Hi Dubai
10-03-2025
- Business
- Hi Dubai
Leaving UAE for Good? Here's What You Need to Know to Avoid Legal Hassles
Question: After a successful career and life in Dubai, I am planning to retire next month. Can you guide me on the necessary steps to take before leaving the country for good, such as cancelling visas for my family members, credit cards, tenancy agreements, and other important considerations? Answer: When leaving the UAE permanently, there are several key steps you must address to ensure a smooth transition and avoid any legal complications. Here are the main aspects to consider: Bank Account Closure: As stipulated in Article 9(b) of the UAE Central Bank Regulation No. 29/2011, it is crucial to close all bank accounts before leaving. Commercial banks must terminate accounts without imposing penalties if the account has been open for over a year. The closure process should be completed within seven days of submitting your request. Failure to do so may lead to issues with your financial standing. Visa Cancellations: Ensure that all visas associated with your stay in the UAE, including family visas, are cancelled. This is a critical step, as non-compliance can lead to fines or other legal implications. It is advisable to complete this process well before your departure date. Tenancy Agreement and Property Handover: According to Article 14 of the UAE's Law No. 33 of 2008, tenants must notify their landlords of their intent to vacate the property at least 90 days prior to the expiration of the rent contract. You must also settle any outstanding dues, hand over the property, and ensure the landlord acknowledges receipt of the keys and possession. Credit Card Payments: Clear all outstanding credit card dues before leaving the UAE. If any payments are missed, lenders may file legal action, including a request for a travel ban if the debt exceeds AED 10,000. Legal action could escalate to an arrest warrant, making it essential to settle your financial obligations before departure. In conclusion, to ensure a hassle-free retirement and departure from the UAE, it's essential to address these practical matters such as bank account closure, visa cancellations, tenancy management, and credit card payments. Compliance with these steps will help avoid potential legal issues, including travel bans and financial disputes. If in doubt, consult with the relevant authorities or legal professionals for further assistance. News Source: Khaleej Times
Khaleej Times
09-03-2025
- Business
- Khaleej Times
Leaving the UAE permanently? Credit card dues, visa, rental contract cancellation explained
Question: After a fruitful career and life in Dubai, I am planning to retire next month. Can you please tell me the aspects I need to take care of before leaving the country for good — for instance, cancelling visas of my family members, credit cards, tenancy etc. Answer: If an individual is leaving the UAE and has no intention of coming back to the country on residency, it is advised to close all bank account(s) as laid down in Article 9(b) of the UAE Central Bank Regulation No. 29/2011 dated February 23, 2011, on Regulations Regarding Bank Loans & Other Services Offered to Individual Customers. The law states, 'Commercial banks may open all types of accounts for their retail customers, but in such cases, they must abide by the standard agreement mentioned under Article (12) of these regulations. In case a customer requests the closing of the account and termination of the business relationship with the bank, the bank should do that without imposing a penalty if the account opening date goes back more than one year. In all cases, an account must be closed and an appropriate certificate must be issued within, maximum, seven days from the date of submission of the application.' Furthermore, for cancellation of the family member's visa, you can either visit the Amer Service Centre or complete the process online by submitting the required documents and paying the applicable fees for the service. An individual sponsoring his/her spouse, children and other dependents must cancel the dependents' visas before he/she cancels his/her own visa. The Dubai Land Law does not specifically address the early termination of tenancy agreements. Therefore, you may notify your landlord in writing at least 90 days prior to the expiration of the agreement, indicating your intention not to renew the lease and your decision to vacate the property. In case you intend to vacate the property before 90 days, you may inform your landlord about the same and mutually agree with your landlord to do so. In case there is no mutual agreement on the said issue, you may reach out to the Real Estate Regulatory Authority to resolve the matter. 'Article 14 of the Law No. 33 of 2008 Amending Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai: Unless otherwise agreed by the parties to a rent contract, where either party wishes to amend any of its terms pursuant to Article (13) of this Law, that party must notify the other party of this intent no less than 90 days before the date on which the rent contract expires.' It is advisable to clear all the credit card dues before leaving the UAE. In case, you have defaulted in making any payment, the lender may approach the relevant court which has jurisdiction if the outstanding amount is more than Dh10,000 and request the imposition of a travel ban on you in accordance with provisions of Article 324 and Article 325 of the Federal Decree Law no. 42 of 2022 on Civil Procedures Law. Additionally, the lender may file a payment order case or a civil case against you in court to recover the outstanding debt. If the final judgement is not in your favour, the lender may proceed to file execution proceedings against you and that may include a request to impose a travel ban and issue an arrest warrant against you. In conclusion, before retiring and leaving the UAE, it is essential to address key aspects such as closing your bank accounts, cancelling family visas, managing your tenancy agreement and handing over possession and keys of the rented property while you are vacating with acknowledgement from the landlord. Compliance with all the above will avoid any legal complications. You may consult the relevant authorities or legal professionals for further guidance if needed.
