The UAE has implemented a groundbreaking financial law, Federal Decree Law No. (6) of 2025, significantly enhancing the Central Bank’s regulatory powers and introducing stringent penalties for non-compliance. The law, which came into effect on November 5, 2025, aims to bolster financial stability, protect consumers, and regulate emerging financial technologies. It applies to a broad spectrum of the financial ecosystem, including banks, insurers, fintech firms, payment system providers, and other financial service entities. Administrative fines for violations can now reach up to Dh1 billion, with the Central Bank authorized to withdraw penalties directly from violators’ accounts before a final judicial ruling. Additionally, the law mandates public disclosure of penalties and settlement decisions to enhance transparency and market discipline. The legislation also empowers the Central Bank to intervene early in distressed institutions, imposing corrective measures, replacing management, or taking control if necessary. Furthermore, the law consolidates consumer complaints under the Sanadak platform, streamlining dispute resolution for banking and insurance services. The Central Bank’s role as the national Resolution Authority is reinforced, enabling it to manage crises effectively, including restructuring capital and ensuring continuity of essential services. The law also integrates environmental, social, and governance (ESG) principles into the Central Bank’s operations, aligning with global sustainability trends. Financial institutions have one year to comply with the new requirements, with potential extensions granted as needed.
Up to Dh1 billion fine as UAE boosts Central Bank powers under new financial law
