Benjamin Filaferro, Author at LexisNexis Middle East

UAE:Abu Dhabi Global Market Launches Public Consultation on Proposed Electronic Transactions Regulations

19/09/202019/09/2020
by Benjamin Filaferro

The Abu Dhabi Global Market have announced they have launched a public consultation paper on proposed Electronic Transactions Regulations. The consultation ends on 14 October 2020. The aim of the Regulations is to clarify e-signatures are enforceable and electronic records have an equivalent impact to physical copies. They highlight references to ‘writing’ in legislation include electronic form and therefore confirm the validity of electronic contracts. It comes as businesses and consumers are adapting to electronic dealings, including online contracting and e-signatures. Legal concepts have traditionally been based on the existence of a tangible or physical medium. Concepts like document, an ‘original’ or a ‘signature’ still remain relevant in legislation and need to be considered in today’s ever-changing digital environment, particularly when taking the impact of Coronavirus into account.

Weekly Spotlight

Saudi Arabia:Money Laundering and Terrorist Financing

19/09/202019/09/2020
by Benjamin Filaferro

Saudi Arabia’s Monetary Authority has announced new money exchange business regulations have been approved. They are aimed at tackling money laundering and terrorist financing as well as protect clients.
They will come into force 30 days after they are issued and allow hotels, hotel apartments and tourist offices to exchange currencies from their customers provided these currencies are sold to a licensed bank or exchange centre and national anti-money laundering provisions and UN Security Council resolutions on the spread of weapons of mass destruction and their financing are complied with.
Licensed money changers will only be able to buy, sell and circulate foreign currencies and import and export currencies. They will be licensed by the Monetary Agency.

Exchange shops should not carry out any activities which they are not licensed to. This includes any other commercial business not approved by the Agency, opening current accounts, investment accounts, savings accounts, or any other accounts for their clients or employees. In addition, they should not issue letters of guarantee or open documentary credits or guarantees, lease safes, accept deposits or speculate in currencies, metals and stocks.
In addition, they have to comply with Saudisation requirements, contract with employment services companies regarding working hours, official holidays, appointments to leadership positions and provide an administrative structure which includes all departments and jobs. This structure has to specify the tasks of departments and individual duties and responsibilities. A compliance officer also has to be appointed.
Exchanges must set an appropriate framework to protect customers from fraud and loss of privacy and comply at all times with clear signs for the public indicating customer rights and provide clear channels to receive complaints and address them within seven days.
Exchanges also have to commit to anti-money laundering and terrorist financing instructions, identify, document and address risks and develop and implement appropriate and appropriate policies capital. In addition, they have to have two million Riyals in paid up capital. This is 7 million for payments to Centres who import and export cash have to have seven million Riyals in liquidity and centres authorised to transfer funds outside the Kingdom have to have 10 million Riyals. They also have to keep a cash reserve of between 5 and 10%.

Licenses will be valid for five years and may be renewed. If a license is being renewed, it has to be done six months before the license is due to expire. They have to commit to carry out the activity in a suitable location, not use the word bank or bank, identify suspicious and fraudulent transactions and comply with the risk management policy. They also have to record all operations in the automated system and maintain confidentiality of information.
In terms of attribution to a third party, an approved policy, which is periodically reviewed, has to exist and there should be no obstacles to accessing their data. They must also be licensed to practice their commercial activity.
When it comes to importing and exporting currencies, there have to be customs notifications at border crossings, all documents for the importing and exporting of currencies have to be kept and funds have to be prepared in an appropriate way before they are transferred.
Exchanges also have to comply with all Monetary Agency instructions in terms of consumer protection and transaction receipts. They also have to ensure currency rates are clearly on display and resolve complaints within a week.
They should ensure their confidential information is not disclosed. Periodic data has to include the location of the head office, branches, and other entities, holders of leadership positions and their job titles, a list of employee data and names, suspension or restriction of services. If they do not, their license will be temporarily suspended.

Their exchange permit will be cancelled if they do not meet the requirements of the regulations, if one of the license conditions is lost, if its information is found to be incorrect or if the centre harms its clients or the public interest. Their permit will also be cancelled if the inspection team is prevented from performing its task or if it refuses to provide the Agency with the requested documents.

News developments

UAE: Influencers Must be Authorised to Run Advertisements

14/09/202014/09/2020
by Benjamin Filaferro

The UAE’s National Media Council has clarified influencers must be authorised to run advertisements on their social media sites. They must be approved by the Council. This is in line with regulations issued in 2017 by the country’s Cabinet. Advertisements involving health or pharmaceutical products and medical equipment will have to be approved by the Health and Prevention Ministry. All information in the advertisements has to be correct and there should be no errors in the names or specifications about the products. Advertisements must not be vague, ambiguous or unclear; contain false or misleading claims, use fabricated images, exaggerate the product or service being advertised or cause confusion between names, products or activities. The advertisement’s identity should be transparently defined and use clear and unconfusing language. Firms and individuals who don’t comply with the rules will be fined.

News developments

Saudi Arabia: Amendment to Bylaws of Saudi Foreign Business Councils Approved

14/09/202014/09/2020
by Benjamin Filaferro

Saudi Arabia’s Commerce Minister has announced they have approved an amendment to the bylaws of the Saudi Foreign Business Councils. Under Saudi Arabia Ministerial Decision No. 56103/1442, a system will be implemented to review the Regulations after a year. It will come into force on its issued date and has been published in the Official Gazette.

News developments

Oman: Omanisation in Sub-contracted Work Announced

14/09/202014/09/2020
by Benjamin Filaferro

According to local newspaper reports, the Undersecretary for Oman’s Labour Ministry has announced the Omanisation rules for sub-contractors. Under the rules, Omanis will be prioritised. The sub-contracting of expatriates should stop to enable this.

News developments

Kuwait: Regulations for Performing Obesity Operations in Government and Private Sectors Approved

14/09/202014/09/2020
by Benjamin Filaferro

Kuwait’s Health Ministry has announced they have approved regulations for performing obesity operations in the Government and private sectors. The patient must be between 18 and 50, with a BMI of 50 or less and classified under the third category or less. This is according to the American Anaesthesia Association classification.

News developments

Dubai: International Financial Centre Expands Prescribed Company Regime

14/09/202014/09/2020
by Benjamin Filaferro

The Dubai International Financial Centre has announced it has expanded the applicant criteria for its Prescribed Companies regime. The expanded regime is aimed at attracting companies to establish in the DIFC in a way which aligns with international best practices. The expanded Prescribed Company regime is open to all DIFC non-retail companies, along with their shareholders, Ultimate Beneficiary Owners and affiliates. It can now also be used by family businesses with a large presence in the UAE.

News developments

Abu Dhabi: Hotels Must Provide Kosher Food

14/09/202014/09/2020
by Benjamin Filaferro

The local authorities in Abu Dhabi, have said all the hotels there will have to provide kosher food. The announcement was made ahead of the anticipated arrival of Israeli tourists. All Abu Dhabi hotels also have to get a kosher certificate which is a document proving the food is produced according to Jewish law and allocate an area in all kitchens to prepare food intended for Jewish tourists.

Weekly Spotlight

Qatar: Conditions for Changing Jobs Without No-Objection Certificate Announced

14/09/202014/09/2020
by Benjamin Filaferro

Qatar’s Administrative Development, Labour, and Social Affairs Ministry has announced the conditions for employees looking to change jobs without having to have a no-objection certificate.
The employee has to notify employers through the Ministry’s electronic notification system. They will have to serve notice of at least a month. If the employee has been in the job for two years or less two-months’ notice will have to be given.
When they submit their notification, they have to provide the Ministry’s change-of-employer form ,a copy of the contract signed with the former employer, authenticated by the Ministry or employment offer if a copy of the contract cannot be provided. They will also have to submit the new employer’s job offer in Arabic.
The employee and new employer will then receive an SMS from the Ministry confirming the change of employment.
The new employer should initiate the electronic employment contract on the Ministry’s Digital Authentication System and print out the employment contract and discuss and sign it with the employee.
A signed version of the new employment contract should be uploaded on the Ministry’s system and the authentication fee of 60 Riyals will have to be paid.
When the contract is authenticated, the new employer should submit a request for a new QID to the Interior Ministry.
Once these procedures are completed, the employee will be able to start their new job. The employee should receive their new Qatari ID card (QID) and health card from the new employer.
Where an employee wants to change jobs during their probation period, the current employer has to be given at least one month’s notice. The new employer has to compensate the current employer a portion of recruitment fees and one-way air ticket at the amount agreed to by the current and new employers. However, this cannot exceed two months of the employee’s current basic wage. Authentication System and print out the employment contract and discuss and sign it with the employee.
A signed version of the new employment contract should be uploaded on the Ministry’s system and the authentication fee of 60 Riyals will have to be paid.
When the contract is authenticated, the new employer should submit a request for a new QID to the Interior Ministry.
Once these procedures are completed, the employee will be able to start their new job. The employee should receive their new Qatari ID card (QID) and health card from the new employer.
Where an employee wants to change jobs during their probation period, the current employer has to be given at least one month’s notice. The new employer has to compensate the current employer a portion of recruitment fees and one-way air ticket at the amount agreed to by the current and new employers. However, this cannot exceed two months of the employee’s current basic wage.

News developments

Kuwait: Numbers of Employees Cannot be Increased

05/09/202004/09/2020
by Benjamin Filaferro

According to local newspaper reports in Kuwait, the numbers of employees cannot be increased when the country’s curfew is partially lifted on 30 August. Only those who are already working in Ministry and Government agency premises will be allowed to carry on working there. Everyone else should carry on working remotely.