Weekly Spotlight: Abu Dhabi Global Market Launches Digital Sandbox

This week the spotlight is on Abu Dhabi’s Global Market Financial Services Regulatory Authority who has announced its launch of a FinTech digital sandbox to allow financial institutions and FinTech innovators to work together to experiment on products and solutions in a digital platform environment.

The digital sandbox will provide a marketplace for open collaboration between financial institutions, FinTech firms and regulators to facilitate the testing and adoption of innovative digital financial products and services which can benefit the industry regionally.

It will allow financial institutions to source and procure FinTech solutions locally and globally, run digital tests on the platform and adopt and orchestrate the best ones which meet their business needs. It will also enable FinTech firms to offer their innovative solutions to international market players and tap cross-border market access and opportunities to grow and scale their business and participants in the UAE and regional markets to connect with other international markets and vice versa.

Weekly Spotlight: Abu Dhabi Global Market Launches New Private Financing Platform Regulatory Framework

This week the spotlight is on regulatory developments in the UAE, where Abu Dhabi’s Global Market Financial Services Regulatory Authority has announced it has launched its framework to regulate Private Financing Platform operators to meet the equity investment, debt financing and trade receivable funding needs of start-ups, private enterprises and small and medium enterprises.

It follows a consultation on the proposed framework which ended on 16 August 2018. Private Financing Platforms are online platforms which enable start-ups and smaller enterprises to obtain financing from private and institutional investors to launch and grow their businesses. These Platforms allow innovative business models which serve different business and client segments. The new framework requires Platform operators to have appropriate systems and controls in due diligence of those enterprises listed on the Platform, risk disclosures, safeguarding of client assets, anti-money laundering and anti-terrorist financing (AML/CFT), amongst other things. The Authority has also published the Guidance-Regulatory Framework for Private Financing Platforms’ and the application form for interested applicants to operate a Platform in the Market. The Guidance elaborates on the Market’s approach towards regulating Platform operators.

Weekly Spotlight: New Trademark Application Procedures in the UAE

This week the spotlight is on intellectual property developments in the UAE where the Trademarks Department in the Economy Ministry has issued an administrative decision regarding trademark application procedures.

The Decision stipulates that as applications are now filed online, it will no longer be possible to request an amendment for an application after it has been submitted, except for corrections to the agent-on-record details, provided a proper power of attorney has been filed. In case an application contains the wrong information with respect to international classification number, list of goods and services, missing documents, or any other aspect, the examination section will issue an office action against these applications, and applicants (or their representatives) cannot amend applications before examination.

Weekly Spotlight: UAE Illegal Immigrant Amnesty to Start on 1 August 2018

This week the spotlight is on immigration developments in the UAE where the Federal Authority for Identity and Citizenship has announced the amnesty for illegal residents in the United Arab Emirates will last for three months, starting 1 August 2018.

The ‘Protect Yourself by Modifying Your Status’ initiative will allow foreign nationals to regularise their status by either leaving the UAE without paying a fine and without facing a return immigration ban (only those who entered illegally will be subject to a two-year entry ban), or by changing their sponsorship inside the country. Those who decide to leave will be issued an exit permit valid for ten days, whereas those who wish to remain in the UAE will have to provide documents from their new sponsor before a residence visa can be granted. Those without a confirmed job offer will be given a six-month temporary residence status to secure new employment in the UAE under the supervision of the Human Resources and Emiratisation Ministry. It is not yet clear how the unemployed foreign nationals will be able to fill up the available positions. Nine service centres are established across the country to assist individuals with the application process, in addition to a toll-free number 800-80 for phone inquiries.

Weekly Spotlight: Abu Dhabi Global Market Launches Crypto Asset Regulatory Framework

This week the spotlight is on regulatory developments in the Abu Dhabi Global Market, where their Financial Services Regulatory Authority has launched its framework to regulate spot crypto asset activities, including those undertaken by exchanges, custodians and other intermediaries in the Global Market. The framework has been introduced following the conclusion of a public consultation which was launched by the Global Market’s Financial Services Regulatory Authority and ended on 28 May 2018.

The framework is designed to address the full range of risks associated with crypto asset activities, including money laundering and financial crime, consumer protection, technology governance, custody and exchange operation risks. As a result of feedback received during the consultation, several refinements have been made to the regulatory framework. One of the most significant changes is the implementation of a Daily Value Trading Levy which will be imposed on Crypto Asset Exchanges on a sliding scale.

In addition, the Financial Services Regulatory Authority has published its Guidance-Regulation of Crypto Asset Activities in the Global Market and application form for interested applicants to operate a crypto asset business in the Global Market. The Guidance elaborates on the Market’s approach towards the regulation of crypto asset activities and is a useful resource for interested applicants.

Weekly Spotlight: A Series of Employment and Immigration Developments in the UAE

This week the spotlight is on employment and immigration developments in the UAE, where additional changes to the country’s visa system and an upcoming amnesty for illegal residents have been announced by the Cabinet at its latest session. These changes are in line with earlier announcements, including the introduction of a new insurance scheme which will replace the bank guarantees system in the country. In the last quarter of 2018, a new one-year permit will be introduced for women and their children residing in the UAE without a visa sponsor due to certain circumstances including a divorce or death of their husband. Currently, no similar provision is guaranteed in the immigration regulations and the decision of allowing residency in these cases is discretionary.

Nationals of countries affected by war or natural disasters will be offered an extendable one-year residency permit free of charge, regardless of their current visa status. No specific list of countries has been issued yet. According to the announcement, the regulation will be in effect from 1 August until 31 October 2018.

Finally, the Federal Authority for Identity and Citizenship has announced an amnesty initiative called ‘Protect Yourself by Modifying Your Status’ which is expected to be launched in the coming weeks. The programme is aimed at allowing illegal residents in the UAE to correct their immigration status. Foreign nationals will have a choice to depart from the country without paying fines and without an immigration ban, or to change their status to employment. Those who entered illegally will be allowed to depart and will be issued with a two-year immigration ban.