Dubai, United Arab Emirates: The Dubai International Financial Center (DIFC), the leading global financial center for the Middle East, Africa and South Asia (MEASA) region, today announced that His Highness Sheikh Mohammed bin Rashid Al Maktoum, in his capacity as Ruler of Dubai, has enacted the DIFC Laws Amendment Act, DIFC Act No. 2 of 2022 to incorporate amendments that keep the regulatory framework aligned with international best practice.
Promulgation facilitates amendments to the Data Protection Act 2020, Insolvency Act 2019 (and Insolvency Regulations), Electronic Transactions Act 2017, Trusts Act 2018 , the Strata Securities Act of 2007 and the Common Reporting Standards Act of 2018, as well as the rules of interpretation in various DIFC Acts.
The amendments to the Data Protection Act 2020 and the Insolvency Act 2019 (and the Insolvency Regulations) have been subject to public consultation. Input from various stakeholders was valuable in developing the amendments.
Data Protection Law
The changes reflect DIFC’s commitment to maintaining its position at the forefront of privacy legislation in the region. The changes include clarifying the legal redress process for individuals, to align more closely with international best practice, particularly in light of recent landmark decisions in Europe regarding the rights of data subjects. They establish better accountability requirements for controllers and processors where the rights of individuals may be affected when a data access request is deemed to be vexatious or repetitive. The powers of the Commission have also been refined with respect to the information available when making an instruction or determination of a breach of data protection law and an alignment has been made regarding the intention of the DIFC Courts Act regarding the imposition and payment of court fees by DIFC bodies.
Insolvency law and insolvency regulations
Amendments to the Insolvency Act bring bond requirements in line with current practices in the UAE and ensure consistency of liquidator reporting obligations regarding the different types of liquidation proceedings available under the Insolvency Act. ‘insolvency.
Electronic Transactions Act
The scope of the law has been widened by removing the exclusions relating to electronic records, electronic contracts and electronic signatures used in connection with the sale, purchase or long-term rental (for a period more than 10 years) of real estate. This change also aligns with DIFC’s commitment to the Government of Dubai’s paperless strategy.
The definition of ultimate beneficial owner has been amended under the Trusts Act. This responds to a recommendation from the Financial Action Task Force on clarifying the definition.
Strata Title Act
The Amending Act incorporates minor changes to align certain Strata Title Act definitions with the respective Real Property Act 2018 definitions, as well as to correct typographical errors.
Common Reporting Standards Act
The amendments ensure that the DIFC’s Common Reporting Standard (CSR) framework aligns with the Federal CSR Framework, as recently updated by Cabinet Resolution No. 93 of 2021, with the aim of meeting ultimately the relevant standards issued by the Organization for Economic Co-operation and Development (OECD). Key changes include changes to the penalties framework, including the enforcement process, the right to appeal, and the addition of new penalties, as well as other miscellaneous improvements.
Rules of interpretation
Updates have been made to clarify the definitions of “day” and “working day” in various DIFC laws, following the government’s decision to align the UAE’s working week and weekend with global markets.
The Amendment Acts can be viewed by visiting here.
About Dubai International Financial Center
The Dubai International Financial Center (DIFC) is one of the most advanced financial centers in the world and the leading financial center for the Middle East, Africa and South Asia (MEASA), which comprises 72 countries with a population of around 3 billion and an estimated GDP. of $7.7 trillion.
With 17 years’ experience in facilitating trade and investment flows in the MEASA region, the Center connects these fast-growing markets to economies in Asia, Europe and the Americas through Dubai.
The DIFC is home to an internationally renowned independent regulator and proven judicial system with an English common law framework, as well as the region’s largest financial ecosystem with nearly 28,000 professionals working in over 3,200 active registered companies – making up the largest and most diverse pool. of industry talent in the region.
The Centre’s vision is to drive the future of finance through cutting-edge technology, innovation and partnerships. Today, it is the future global finance and innovation hub offering one of the most comprehensive FinTech and venture capital environments in the region, including cost-effective licensing solutions, responsive regulation, innovative acceleration programs and start-up funding for the growth phase. -UPS.
Comprising a variety of world-renowned retail and dining venues, a vibrant arts and culture scene, residential apartments, hotels and public spaces, DIFC continues to be one of the premier business and style destinations Dubai’s most sought-after lifestyles.
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Dubai International Financial Center Authority
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