The Central Bank of the UAE has issued two fintech regulations, which took effect on 15 April 2024, including the Open Finance Regulation, which establishes a mandatory framework requiring UAE-licensed banks and insurers to provide Open Finance Providers with access to financial data and services through a centralised API Hub. The CBUAE also published the Sandbox Conditions Regulation.
CENTRALISED API HUB
Under the Open Finance Regulation, UAE-licensed banks and insurers must make data and services available to authorised Open Finance Providers through the centralised API Hub. The hub model differs from purely bilateral API arrangements in which each financial institution develops and maintains its own technical interface on individual terms.
NEW LICENCE CATEGORY FOR SERVICE PROVIDERS
The Open Finance Regulation introduces a dedicated Open Finance licence for entities providing data-sharing and service-initiation services under the new framework.
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