The United Arab Emirates has enacted Federal Law No. 6 of 2025, a sweeping reform that reshapes the country’s entire financial regulatory framework. The new legislation replaces two previous laws — Federal Law No. 14 of 2018 on the Central Bank and Federal Decree No. 48 of 2023 on insurance. The updates affect banks, insurance firms, fintech startups, and technology providers operating in the financial sector.
Under the new framework, the Central Bank of the UAE (CBUAE) has been granted enhanced supervisory and enforcement powers. The maximum administrative fine has risen from AED 200 million to AED 1 billion. The regulator can now revoke licences in severe cases and appoint temporary administrators for troubled institutions. A new concept of “early intervention” allows the Central Bank to act preventively at the first signs of capital or liquidity stress — well before a crisis develops.
Technology platforms brought under regulatory supervision
The most notable change is the expansion of the list of activities requiring a licence. The law now explicitly covers:
- provision of open-finance services
- payment operations using virtual assets
Equally significant is the Central Bank’s new jurisdiction over technology service providers. Companies that manage digital platforms, decentralised applications, protocols, and technical infrastructure for financial services are now under supervision. Previously, regulation targeted only financial institutions; today, it encompasses the entire technological backbone of the economic ecosystem.
This marks a philosophical shift in regulatory thinking. The Central Bank recognises that modern finance cannot exist without technology and that oversight must extend across the whole operational chain. For fintech startups, this means stricter compliance, more explicit rules, and greater legitimacy.
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The law also creates an independent Complaints and Appeals Committee to review challenges to Central Bank decisions, with further recourse available through the Federal Supreme Court. Given the CBUAE’s recent rise in enforcement activity, a formal appeal mechanism was long overdue. Financial institutions and fintech firms now have a transparent route for contesting regulatory actions.
Another key addition is the regulator’s right to publicly disclose enforcement outcomes, including the names of institutions and individuals involved — a transparency measure expected to deter future violations. According to real estate news today in the UAE, many financial institutions are already adapting to the stricter compliance landscape by strengthening internal controls and risk-management procedures.
Fraud prevention becomes a legal duty for banks and insurers
The new law places strong emphasis on consumer protection. Earlier versions barely mentioned anti-fraud measures, but the 2025 legislation makes fraud prevention a mandatory responsibility for all licensed institutions, including insurance companies. This includes protection against social engineering, data theft, and identity fraud.
The Central Bank acknowledged that fraud has become a real systemic threat requiring regulatory action. Licensed institutions must promptly notify affected clients of any security breach or fraudulent incident and take corrective measures to minimise damage.
Companies subject to the law are urged to update their cybersecurity policies, as prior frameworks may no longer meet the new standards. Industries handling financial transactions — including property maintenance in Dubai and related service sectors — will also need to comply with stronger safeguards for online payments and client data protection.
The law provides a one-year transition period. Firms must align their operations with the new requirements by September 16, 2026, though the Central Bank reserves the right to extend the deadline.
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The introduction of the new Central Bank Law underscores the UAE’s ambition to maintain its position as a leading global financial hub and to ensure the long-term stability of its economy. Regulation is evolving alongside the market itself, encompassing emerging technologies and business models that did not exist when previous frameworks were written.
