What is the Financial Services Regulatory Authority in Abu Dhabi, UAE?
The ADGM's Financial Services Regulatory Authority (FSRA) was established to advocate for a progressive financial services environment and uphold the integrity of the whole international financial center.
What does FSRA in Abu Dhabi, UAE do?
The FSRA manages any potential risks to the marketplace and oversees all financial activities within the Abu Dhabi Global Market (ADGM) international financial center.
In addition, the FSRA works with other regulatory bodies to ensure that the ADGM remains compliant with international standards. By promoting a supportive and well-regulated environment, the FSRA plays a vital role in attracting businesses to the ADGM and helping it grow into a leading international financial center.
Who regulates banking and financial services in the UAE?
The Central Bank of the UAE (CB) is the primary regulator of banks in the UAE and any other financial institutions that provide banking services. Secondly, the Securities and Commodities Authority (SCA) is responsible for regulating securities and commodities markets in the UAE and any firms that trade in these markets. The Dubai Financial Services Authority (DFSA) is the regulator of the Dubai International Financial Centre (DIFC), and the Financial Services Regulatory Authority (FSRA) is the regulator of the Abu-Dhabi Global Market (ADGM). These four bodies ensure that banks and other financial institutions operating in the UAE adhere to strict regulations designed to protect consumers and investors.
ADGM Financial & Cyber Crime Prevention
ADGM Financial & Cyber Crime Prevention (FCCP) is responsible for ADGM's efforts to promote sound practices in financial crime compliance. This includes anti-money laundering and countering the financing of terrorism (AML/CFT), as well as compliance with international tax reporting obligations such as the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS).
FCCP undertakes a risk-based approach to its work, which involves identifying, assessing, and mitigating financial crime risks in ADGM. In addition, FCCP works closely with ADGM's Regulators to ensure that ADGM's framework for financial crime prevention is aligned with international best practices.
What is the objective of the FCCP?
The objectives of the Financial & Cyber Crime Prevention Team in the ADGM are
- to develop sound practices in AML/CFT compliance that aim to protect ADGM from ML and TF risks,
- to ensure that ADGM meets all its obligations in international tax reporting requirements
- to lead AML/CFT supervision efforts in ADGM according to the best international practices and in line with UAE Federal Laws,
- and raise awareness among the ADGM community to ensure a proper understanding of financial crime risks.
Objectives also include developing and implementing mechanisms for identifying, assessing, monitoring, and reporting financial crime risks; and promoting effective coordination and information sharing between relevant authorities on financial crime matters.
New regulatory framework for Third-Party Financial Technology Services
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) introduced in 2021 a new regulatory framework for the authorization and supervision of financial technology (FinTech) firms providing third-party services to customers of financial institutions.
This new regulatory framework will enable the FSRA to grant licenses to fintech firms providing Third-Party Financial Technology Services (TPFTS) to customers of authorized financial institutions in the Abu Dhabi Global Market (ADGM). The FSRA will also be able to impose requirements on these firms and supervise their activities. This new regulatory framework promotes innovation in the financial services sector while ensuring that customers are protected from risks. It is intended that the introduction of the new regulatory framework will encourage more fintech firms to enter the ADGM market and provide innovative new services to customers.