Newsletter Archives - Page 212 of 247 - LexisNexis Middle East

Weekly Spotlight: Amendments to the Abu Dhabi Global Market’s Crypto Asset Activities Guidance

19/05/201911/12/2019
by Benjamin Filaferro

Abu Dhabi Global Market’s Financial Services Regulatory Authority has amended its Crypto Asset Activities Guidance. The Guidance was first issued in mid-2018 and has since been amended twice. It was the first guidance of its kind when it was published then. The amended Guidance includes key updates on Stablecoins and Fiat Tokens, Custody, Technology Governance and Anti-Money Laundering and Sanctions Rules and Guidance.

Stablecoins which are fully backed by fiat currencies (Fiat Tokens) will be treated as a form of digital currency. When they are used as a payment instrument for Money Transmission which is defined under the Global Market’s Financial Services and Markets Regulations 2015, the activity will be licensed and regulated as Providing Money Services. The amended guidance also sets out the Authority’s approach to regulating issuers, custodians and exchanges using Fiat Tokens. The amended guidance provides further clarity on the types of crypto asset custody activities which can be undertaken and sets out the Authority’s expectations in terms of custody governance and operations.

In addition, there are amendments to the technology governance provisions in the guidance. For example, there are changes in the underlying protocol of a crypto asset which results in a fork or coding change, and the associated governance and control expectations for crypto asset exchanges and license holders.

Finally, the guidance has been amended to reflect the latest changes in anti-money laundering and sanctions changes and there is additional clarity on the use of new regulatory and surveillance technologies in this area.

Bahrain: New Providing Cloud Computing Services to Foreign Parties Law Approved

18/05/201911/12/2019
by Benjamin Filaferro

Bahrain’s Shoura Council have approved four laws including a new Providing Cloud Computing Services to Foreign Parties Law. It is aimed at international cloud providers who have shown an interest in establishing in the Kingdom following the launch of Amazon Web Services. The Council also approved a Letters and Electronic Transactions Law which will establish a new framework for associated banking and financing services.

Kuwait: New Insurance Law Approved

18/05/201911/12/2019
by Benjamin Filaferro

Kuwait’s National Assembly has approved a new Insurance Law in the country at first reading. The changes would be the first to the legislation since 1981. MPs are still debating whether the sector should be regulated by the Central Bank or the Commerce Ministry but have called for a bespoke regulator not to b established. While Kuwait was the first GCC country to regulate its insurance sector they are the last to amend the legislation to reflect sectorial developments.

KSA: Implementing Regulations to the Special Residency Permits Law in the Making

18/05/201911/12/2019
by Benjamin Filaferro

Saudi Arabia’s Centre for Special Residency Permits is currently working on drafting the Implementing Regulations to the Special Residency Permits Law. The Regulations will include the conditions and procedures for applying for these permits. The Centre will announce details of the Implementing Regulations and how applications from applicants who are already in Saudi Arabia or from abroad will be handled. The aim of the law is to diversify the Saudi economy.

Abu Dhabi Global Market Courts and Ras al Khaimah Courts Sign Cooperation Agreement

13/05/201911/12/2019
by Benjamin Filaferro

The Abu Dhabi Global Market Courts and Ras al Khaimah Courts have announced they have signed a cooperation agreement to facilitate the reciprocal enforcement of their judgments, decisions and orders and arbitral awards. The agreement was signed for the Global Market Courts by their Chief Justice, Lord Hope of Craighead KT. It was signed for the Ras al Khaimah Courts by their Chairman, HE Ahmed Mohammed Al-Khattari.

KSA: Special Residency Permits Draft Law Submitted to the Government

13/05/201911/12/2019
by Benjamin Filaferro

Saudi Arabia’s Shoura Council has approved a draft special residency permits law and has submitted it to the Government to consider. The aim of the law is to provide various benefits to those who hold special residency permits including the right to recruit foreign worker, own property and transport vehicles and obtain visitor permits for family members. There are two types of special residency permit. The first is unlimited while the other is only available for one year but can then be renewed. It is similar to the Green Card system in the US and if approved will mean applicants will not have to have a Saudi sponsor or employer. To be eligible, applicants must have a valid passport with a credit report, a health report and no criminal record.

Oman: Decree Establishing the Credit and Financial Information Centre Issued

13/05/201911/12/2019
by Benjamin Filaferro

Oman’s Sultan has issued three Decrees including a Decree establishing the Credit and Financial Information Centre. Under Oman Sultani Decree No. 38/2019, a Credit and Financial Information Centre will be established. It will report into the Sultanate’s Central Bank. It will be independent legally as well as administratively and financially. All of the assets, data and their systems from the Banking Credit Information Statistics Department and the Central Bank will be transferred to the new Centre. The Board of Governors of the Central Bank will issue the regulations and decisions necessary to enforce Oman Sultani Decree No. 38/2019. Until they do, the relevant Central Bank regulations and decisions will continue to be enforced unless it contradicts or contravenes the new Decree.

Weekly Spotlight: Changes to the DIFC’s End of Gratuity Scheme Announced

13/05/201911/12/2019
by Benjamin Filaferro

The Dubai International Financial Centre have announced changes to the Centre’s end of gratuity scheme will come into effect on 1 January 2020. It follows the launching of an informal consultation in March 2019 where the Governor of the DIFC sent a letter to several hundred senior executives on replacing the end of service gratuity system with a new Employee Workplace Savings Trust savings scheme.

Under the changes, employees will contribute funds on an ongoing basis rather than being paid by their employer when they leave. However, the rate will be the same as the current gratuity and employees will be able to make extra contributions if they want to. Employees will also be able to determine if they want to invest in low, medium or high-risk options. When they leave they will receive their contributions and the end of service gratuity acquired to the date of the change. The replacement will only affect new benefits and gratuities. A new law laying out the provisions and requirements in detail will be issued and the scheme will be regulated by the Dubai Financial Services Authority. The master trust housing the scheme will be based in the DIFC.

However, it is not clear if the amended framework will only apply in the DIFC or will apply across the UAE.

Kuwait: Draft Expatriate Remittance Tax Law Withdrawn

05/05/201911/12/2019
by Benjamin Filaferro

According to sources in Kuwait, the draft Expatriate Remittance Tax Law has been withdrawn. It followed strong Government criticism of the proposed legislation. Amid concerns the Government would have rejected it, MPs withdrew the legislation rather than risk rejection which would have meant 44 MPs would have had to of approved the reconsideration of the legislation in the country’s Parliament.

Bahrain: Amendment to the 2001 Non-Bahrainis Ownership of Property and Plots Law Approved

05/05/201911/12/2019
by Benjamin Filaferro

Bahraini MPs have approved an amendment to the 2001 Non-Bahrainis Ownership of Property and Plots Law which will mean expatriate property investors will not be able to own property in areas which aren’t designated tourism or investment zones. Previously foreigners were able to buy property anywhere in the Kingdom. It follows concerns Bahrainis were being priced out of the market. The Shoura Council will now consider the amendment.