Suspension of Transactions via Foreign-Registered FinTech Applications in UAE Banks
Banks operating in the United Arab Emirates have implemented stricter measures regarding financial transfers through several FinTech applications registered outside the country. Under these measures, account holders can no longer withdraw funds directly from their bank accounts to these applications, even when providing all required details such as IBAN, bank account number, debit card number, or CVV code.
Data from customer service centers at these banks indicate that clients receive notifications informing them of the suspension when attempting to use these applications. Customers can visit customer service centers or bank branches to obtain further information about available alternatives.
These measures respond to multiple complaints related to delays in receiving transferred funds or incomplete transactions via these applications. The new policy reflects the banks’ commitment to implementing central bank directives, ensuring consumer protection, and minimizing risks associated with dealing with unlicensed foreign FinTech companies.
Banking experts emphasize the importance of having a local presence for financial companies and obtaining licensing from the central bank, which provides legal safeguards for customers and allows them to file complaints in case of financial issues. In contrast, dealing with companies registered abroad lacks any protections for clients’ funds.
Reliable alternatives include services provided by local telecom companies, licensed exchange houses, and several UAE-licensed FinTech firms, which offer financial transfer services efficiently, at lower costs, and with clear safeguards. These measures form part of the banks’ ongoing efforts to update financial and regulatory procedures to meet customer needs and ensure their rights, with the suspension of linking bank accounts to foreign applications serving as a precautionary step to protect funds.
