When it comes to banking system, UAE is one of the most advance, reliable and has highly developed banking infrastructure. This level of development has become attainable because of the strict government regulations and measures implemented by United Arab Emirates Central Bank.
The UAE Central bank oversees and monitor all activities of banks in UAE. The process of obtaining a license for opening a financial institution in UAE is very difficult and that is the primary reason why UAE banking sector has become one of the most reputable banking institutions. Central bank serves the function of the main regulatory authority in UAE. It is responsible for handling most important regulatory task such as currency management, details the monetary policy line and exercise and implements banking regulations.
The banking system of UAE is governed under the applicable Banking Laws, which includes The Central Bank Law; Law of Islamic Banks; Circulars relating to Anti-Money Laundering (AMLSCU). Recently, UAE issued Federal Law No. 14 of 2018 which provide the structure of the UAE Central Bank and the organization of UAE financial institutions and their activities. Under the new law, Central Bank is in charged with the following: