UAE Financial Firms Face September Deadline Under Overhauled Central Bank Law

Financial institutions operating in the UAE are approaching a significant compliance deadline. Federal Decree-Law No. 6 of 2025, which came into force on 16 September 2025, provides a one-year transition period, meaning firms subject to the new framework have until 16 September 2026 to reconcile their positions, though the Central Bank of the UAE retains discretion to extend that window. The law represents a substantial restructuring of the country's financial rulebook. It consolidates the regulation of banking and insurance under a single framework, expands the Central Bank's enforcement powers, and introduces provisions addressing the growing complexity of the global financial system. Consumer protection features prominently: the law unifies the complaints process for customers of both banks and insurance companies under the independent entity Sanadak, establishes specialised judicial committees to adjudicate financial disputes with decisions final and enforceable for amounts up to AED 100,000, and introduces specific fraud prevention obligations. It also reaffirms requirements to align credit facilities with customers' income and outlines proactive early intervention measures to support financial stability. The regulator has already been active in enforcement, imposing penalties on institutions and, in some cases, on individual compliance officers.