AbuDGM Fintech Third Party Services

On Apr. 2, AbuDGM issued rules for fintech firms' third party services.

  • AbuDGM introduced regulatory framework for third party financial technology services.
  • Issued amendment No. 2 to the Financial Services and Markets Regulations 2021.
  • Also updated Conduct of Business rules; Anti-Money Laundering and Sanctions rules and guidance; Prudential – Investment, Insurance Intermediation and Banking rules.
  • Framework Overview
  • Defined providing third party services; and exclusions, such as payment or securities settlement system requiring accessing, processing or transfer of specified information.
  • Focused the new regulated activity for third party providers (TPPs) on accessing, processing as well as transferring of specific types of customer data.
  • Provided regulatory obligations for TPP in areas of data protection and privacy, conduct of business, technology risk, anti-money laundering and countering terrorist financing.
  • Gave customers and businesses more control over wider range of their financial data.
  • Additional amendments include, among others, rules for TPPs professional indemnity insurance, customer due diligence information portability, contractual arrangements.
  • Also on record keeping, outsourcing of operational functions, authentication, liability.

Regulators AbuDGM
Entity Types Bank; Corp
Reference PR, 4/2/2021; RF, COBS_VER10.310321, AML_VER06.310321, PRU_VER09.310321, GLO_VER12.310321, 3/31/2021; Fintech
Functions AML; Compliance; Financial; Market Conduct; Operations; Outsourcing; Privacy; Record Retention; Reporting; Risk; Settlement; Suitability; Technology
Countries United Arab Emirates
Products Banking; Corporate; Insurance; Securities
Regions EMEA
Rule Type Final
Rule Date 4/2/2021
Effective Date 3/31/2021
Rule Id 102075
Linked to
Reg. Last Update 4/2/2021
Report Section International

Last substantive update on 04/06/2021