UAE Banks Federation Appoints Independent Agency to Monitor Code of Conduct Compliance

24 May 2015: The UAE Banks Federation, a professional representative body representing 50 member banks operating in the UAE, has approved the appointment of a new independent monitoring agency for the implementation of its Code of Conduct by member banks. This decision was among the issues discussed at the Federation’s CEOs’ Advisory Council meeting held in Dubai, chaired by His Excellency AbdulAziz Al Ghurair, Chairman of UAE Banks Federation. 

The Council agreed during the meeting to add four new specialized committees in the field of audit, operations and payments, IT, and fraud. The Federation also has recently approved the formulation of a Marketing committee, in addition to its existing specialised committees; the new committee will oversee marketing activities for the 50 member banks, and will ensure ethical behaviour is observed in advertising, as well as truthfulness and transparency in all communications to customers.  The committee will also support customer education initiatives and formulate a set of advertising guidelines.

Also on the agenda for the meeting was the establishment proposed by the UAE Central Bank of a Higher Shari’ah Authority, to complement and oversee the work of Shari’a Boards of individual Islamic banks operating in the country. Representatives of the Federation’s Islamic banking committee are working closely with the Central Bank on guidelines for the establishment of the new body that will help to ensure consistency amongst all UAE Islamic banks in their development of new structures and products.

His Excellency AbdulAziz Al Ghurair commented: “The creation of a Marketing Committee by the Federation and the commissioning of independent monitoring of advertising are tangible actions to reinforce observance of the Federation’s code of conduct, namely that member banks should seek to behave in a transparent and honest way in their marketing communications. This come in line with UBF’s diligence and continuous efforts to ensure that best practice is implemented by member banks in their dealings with their customers.”

The Federation also discussed the progress made on its upcoming annual event, The Middle East Banking forum, which will take place on 16thNovember. The theme for this year’s event will be on Innovation, reflecting the UAE’s year of innovation.

During the meeting, the Council also discussed progress since its last meeting on the range of ongoing projects being carried out by the Federation’s committees.