UAE, Sweden to enhance bilateral relations and foster collaboration

The UAE and Sweden signed two agreements in Abu Dhabi to foster cooperation in judicial and legal matters between the two countries.

These agreements pertain to the extradition of criminals and mutual legal assistance in criminal matters.

Abdullah Sultan Bin Awad Al Nuaimi, Minister of Justice, and Gunnar Strömmer, Swedish Minister for Justice, signed the agreements in the presence of delegations from both countries.

During the signing ceremony, Al Nuaimi praised the bilateral cooperation with Sweden and highlighted the robust relations between the two countries.

He underscored the commitment to enhancing these ties through collaboration in judicial and legal fields.

He affirmed the Ministry's commitment to strengthening legal and judicial cooperation globally by adopting best practices from courts in friendly countries and fostering collaboration to enhance and develop bilateral relations.

For his part, Strömmer expressed his pleasure at visiting Abu Dhabi and signing the agreements with the Ministry of Justice, noting that the judicial relations with the UAE are solid.

He added, "We are pleased to solidify this through the signing of bilateral cooperation agreements in the legal and judicial fields, which we will continue to support and strengthen in a way that serves the interests of both friendly countries."

Meanwhile the UAE government has launched the "Know Your Customer" (KYC) digital platform to provide accurate, comprehensive, and confidential data for financial transactions.

This platform is a key component of the country's strategy to modernize its financial infrastructure, accelerate digital transformation, and establish a unified legal framework for customer identity verification. It enhances transparency, ensures compliance with financial regulations, and strengthens national efforts to combat financial crime.

Established under Federal Decree-Law No. 30 of 2024, the KYC platform is a pivotal step in bolstering the national economy. By providing a secure framework for verifying customer identities, the platform fosters greater trust in the UAE's business and financial systems. Furthermore, it enhances the nation's global fintech standing through advanced technological solutions tailored to the financial, banking, and insurance sectors, ultimately promoting a stable and sustainable economic environment.

The launch of the KYC platform is a significant step in strengthening the leadership of the UAE's banking sector, positioning it among the world's top banking industries. By adopting cutting-edge digital solutions, the platform provides an integrated mechanism for verifying customer identities and ensuring compliance with regulations. This enhanced transparency in financial transactions, facilitated by the platform's accurate and comprehensive data, empowers users to make informed decisions.

Furthermore, the KYC platform ensures the legal and regulated collection and use of customer data, streamlining information exchange between relevant authorities and bolstering cooperation in combating financial crime.

Pursuant to the Decree-Law, a new company will be established in the UAE to develop and manage the KYC platform, possessing the legal authority to conduct its operations. This entity will be responsible for building and overseeing the platform, including managing the collection, storage, analysis, categorisation, use, exchange, and sharing of KYC data in accordance with national cybersecurity policies and standards.

Additionally, the company will issue KYC reports as stipulated by the Decree-Law's executive guidelines and collaborate with data providers to streamline KYC data acquisition, among other relevant duties.

The Decree-Law establishes a strict legal framework for safeguarding customer data, permitting disclosure only under specific conditions. All involved parties are obligated to protect this data from loss, damage, and unauthorized access, requiring prior customer or legal entity approval for any data use or sharing. Customers also have the right to access their KYC report details, as outlined in the executive regulations or guidelines issued by the Central Bank.

Breaching KYC data confidentiality regulations will result in severe penalties, including a minimum two-year prison sentence and a fine of at least Dhs50,000. These penalties apply to any unauthorised 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.

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.

The Central Bank will also define the standards for systems used to store, process, and safeguard data, and specify the customer data that the company can request from data providers.

Dubai International Financial Centre, the leading global financial centre in the Middle East, Africa and South Asia region, has enacted amendments to DIFC Law on the Application of Civil and Commercial Laws in DIFC.

The amendments provide statutory certainty to the source of DIFC Law and how it may be interpreted. In addition, certain amendments have been made to the DIFC Real Property Law and Real Property Regulations.