United Arab Emirates

Regulations

• Can financial institutions use AWS?

  Yes. Financial institutions in the UAE are permitted to use cloud services, provided that they comply with applicable legal and regulatory requirements, such as those described below. 

• Who is the financial regulator?

  The Central Bank of UAE (“CBUAE”) is responsible for regulating banks, insurers, cooperative financial institutions, financial conglomerates, and certain market infrastructures operating onshore (UAE mainland). The CBUAE also regulates Stored Value Facilities (“SVFs”), which are facilities (other than cash) in relation to which a customer pays a sum to the SVF issuer, in exchange for the storage of the value of that money on the facility.

  The Securities and Commodities Authority (“SCA”) regulates listed joint-stock companies listed on stock exchanges in the UAE and other companies operating in the securities field, as well as the provision, use, and exchange of virtual assets in and from the UAE, other than the Emirate of Dubai.

  The Virtual Assets Regulatory Authority (“VARA”) is responsible for regulating and overseeing the provision, use, and exchange of virtual assets in and from the Emirate of Dubai.
  

• What regulations apply to financial institutions using AWS?

  Financial Institutions in the UAE may be subject to a number of different legal and regulatory requirements when they use cloud services.

  Legislation and relevant guidelines issued by the CBUAE, together with the SCA, as well as the guidelines issued by VARA (specifically in relation to the Emirate of Dubai) provide a framework for financial institutions in the UAE when they are planning to use cloud services or offshore data. Key legislation and guidelines include the following:

  • SCA’s Doing Business Guide (section applicable to cloud outsourcing)
  • CBUAE’s Outsourcing Regulations for Banks
  • CBUAE’s Outsourcing Standards for Banks
  • CBUAE’s Guidelines for Financial Institutions adopting Enabling Technologies
  • VARA’s Technology and Information Handbook

  The above framework covers a variety of contractual and operational areas, including due diligence, risk management, business continuity, and monitoring and oversight. The AWS User Guide to Financial Services Regulations and Guidelines in the United Arab Emirates, available on AWS Artifact, summarizes the CBUAE requirements and recommendations related to outsourcing, IT risk, and the cloud. This guide is particularly useful for CBUAE regulated institutions looking to run material workloads using AWS services.

  Customers that have questions about the applicable regulations, and how these may apply to their use of AWS services, can reach out to their account representative.

  Regulations are changing rapidly in this space, and AWS is working to help customers proactively respond to new rules and guidelines. AWS encourages its financial institutions customers to obtain appropriate advice on their compliance with all regulatory and legal requirements that are relevant to their business, including other local regulations, guidelines and laws.

• Key considerations for financial institutions using AWS

  AWS is committed to offering customers a strong compliance framework and advanced tools and security measures that customers can use to evaluate meet, and demonstrate compliance with applicable legal and regulatory requirements.

  Financial institutions who are using or planning to use AWS services can take the following steps to better understand their compliance needs:

  1. Consider the purpose of the workload(s) under consideration and the relevant categories of data in order to anticipate which legal and regulatory requirements may apply.

  2. Assess the materiality or criticality of the relevant workload(s) in light of local requirements. For example:

  a. Prior to outsourcing any material activity, customers regulated under Outsourcing Regulation for Banks, must obtain a prior notice of non-objection from the Central Bank and should also consult with the CBUAE prior to offshoring a material business activity or confidential data.

  b. Any customers regulated by VARA, in line with VARA’s Technology and Information Handbook, are required to put in place adequate policies in relation to cybersecurity and risk assessment and ensure any outsourcing complies with such policies.

  c. Any customers regulated by the SCA that operate virtual asset wallets must in the course of any outsourcing, ensure adherence to certain security standards, review relevant service agreements, and consider requirements relating to record keeping and data protection under SCA’s Doing Business Guide.

  3. Review the AWS Shared Responsibility Model and map AWS responsibilities and customer responsibilities according to each AWS service that will be used. Customers can also use AWS Artifact to access AWS’s audit reports and conduct their assessment of the control responsibilities.

  4. Customers who have further questions about how AWS services can enable their security and compliance needs, or who would like more information, can contact their account representative.

• Key data privacy and protection considerations for financial institutions using AWS

  Financial institutions in the UAE using AWS should also consider applicable privacy requirements, including Federal Decree Law No. 45 of 2021. Customers can refer to the UAE Data Privacy page for further questions on Data Privacy regulations in the UAE.
  

  If customers process or are planning to process the personal data of data subjects in the European Union (EU), they should visit AWS’s General Data Protection Regulation (GDPR) Center. More information on these requirements is included in Navigating GDPR Compliance on AWS.

  Many organizations in both the public and private sectors have data residency requirements, driven by legal and regulatory demands. With AWS Outposts they can bring the advantages of the cloud to their facilities, while storing and processing data in their chosen location.
  

Resources