UAE Charter of Banking

CHARTER OF BANKING BUSINESS IN THE UNITED ARAB EMIRATES

Definitions The following expressions shall have the meanings cited against them unless the context otherwise requires:
The State : The United Arab Emirates .
Central Bank : The Central Bank of the U.A.E .
Banks : The National and Foreign Banks operating in the United Arab Emirates . However, branches and/or managements of such banks outside the State are not included .
Emirates Banks Association : Association of Public interest declared by The Ministry of Labor and Social Affairs in UAE, in 1985 under the Declaration No. ( 102/52 ).
Higher Committee For Human
Resource Development (HRD) in the Banking Sector :
Formed in the United Arab Emirates in accordance with the Council of Ministers' resolution No.(62/6 dated March 4th 1996 ) .
Charter : Charter of Banking Business in the U.A.E.

1. Banks operating in the state had agreed to establish this Charter with full abidance by and compliance with the provisions thereof which ascertain and denote the internationally recognized banking standard principles in general and those in consistence with local circumstances in particular.
2. Notwithstanding paragraph (a) of this article, banks hereby confirm that this charter, in its entirety, shall not under any circumstances be construed as an obligatory document, that the obligations contained herein shall only be interpreted as being moral. Nothing in the articles of this charter shall expand the scope of any legal or contractual obligations amongst signatories banks.

This Charter aims at tightening the cooperation and coordination between the banks, without contradiction with the principles of fair and constructive competition or interference with their respective business, in addition, to consolidation of the cooperation with the Central Bank and other concerned official authorities specially in connection with banking business and relative laws, as well as, to any work might be of value to banks' Staff and clients and which support common interest between all parties .

Banking business is substantially based on mutual trust between the Bank and its Clients and, between banks as well. At the same time it represents an integral part of the community ethics, customs and traditions. The bank's employee is the pillar of such trust. Therefore, he/she should be an example of good manners and trustworthiness. His/her general and special relationship must reflect such qualities and should keep distance from any suspicion whatsoever. He/she should do level best to provide excellent banking service and carry out his/her duties in confidence, utmost honesty, integrity and honor.

Banks have to contribute to creating national banking cadre. They have to encourage the U.A.E. local graduates by employing, qualifying, training them and develop their skills. In this context banks shall cooperate with and respond to the competent authorities, specially HRDC in Banking Sector, The National Human Resource Development & Employment Authority (Tanmia) , Emirates Institute For Banking and Financial Studies (EIBFS), Emirates Banks Association, besides the Ministries and Departments of relevance, Universities and Institutes.

The nature of banking business, the honesty and responsibility undertaken by the staff and the professional risks they are exposed to, require that employees should enjoy handsome pays and benefits, and to improve their skills through continuous training .

1. Banks should be keen to be up-to-date with the latest developments in banking business and endeavor to cope with all developments that lead to excellence and improvement of classification of each of them also, endeavor to develop the banking services and/or providing the up-to-date of such services to meet with their clients requirements.
2. All banks must be keen to not offer any facilities or liabilities to their clients that exceeded their capacities for settlement and/or without sufficient securities, in order to avoid losses and problems that may face both parties in future.

To insure the interest of the national economy in general , and the banking sector in particular, all banks should abide by monetary, credit and banking policies and related resolutions - including the UAE Central Bank resolutions and instructions - beside abidance by this charter and guidance by recommendations and consultations delivered by Emirates Banks Association as well.

(Without prejudice to what indicated in Para b./article Second ) Banks should adopt high level of objectivity and credibility in its media campaigns, without prejudice to other banks rights.

Banks should resort to amicable settlements and to take into consideration arbitration in solving their interface disputes - if any. They should exchange inquiries without prejudice to banking business confidentiality and banks relationship with their clients. Through the communication channels specified by the Central Bank they shall cooperate by reporting on the problematic clients to other banks and take all necessary precautions to face up to this kind of clients.

They cooperate through U.A.E. Banks Association and its competent committees in studying and exchanging views on all legislations and instructions related to Banking business, in light of the real situation, to serve, in conjunction with the relevant authorities, the banking community and public interest.

1. Charter amendment or cancellation may be considered - after a one year of signing the charter /Or of last amendments done to the charter - if any, by a written request signed by at least - one third of member banks who signed the charter - to be submitted to Emirates Banks Association Chairman, where after all member banks who signed the charter to be called for a meeting for discussing the request attended by more than half of those banks. Amendment then will be approved if agreed by two thirds of attending member banks.
   While cancellation of the charter needs the approval of two thirds of the signatories banks.
2. The withdrawal of any of the signatories banks from this charter needs a written notice to be submitted to the Chairman of Emirates Banks Association.

1. A committee shall be formed to look into the inter signatories banks complaints, which breach the provisions hereof, of the following :

   • Chairman of Emirates Banks Association Chairman
   • Two of E.B.A. Board Members -( nominated by the Board) Members
   • Four members from the banks signatories group Members
   • Chosen by the same signatories banks and should be of the senior managements at those banks they represent.
   • Each bank may only have one representative at the committee.
   • The committee to be re-formed every two years.
   • Meetings of the committee shall be considered legal if more than half of its members including the chairman or his nominee from attendees at the meeting.
   • The Committee shall carry its work confidentially and taking its decisions by absolute majority and in case of equal votes, the vote of the chairman shall take precedence.
2. Once a breach is established, a confidential letter shall be sent to the bank in question to remedy the same and undertake not to repeat it, and in case of not complying with the committee request, the committee shall call the concerned bank's management to a meeting to discuss the matter.

Emirates Banks Association shall undertake the secretarial jobs in connection with the correspondence, meetings and committees related to this Charter, represented by its General Manager or the person nominated by the Emirates Banks Association Chairman for this purpose.

This Charter shall be presented to the Central Bank for knowledge and information

This Charter shall be deemed enforced when approved by two thirds of the members of the Emirates Banks Association General Assembly. Two original copies of the charter shall be signed, one of which to be kept with Emirates Banks Association , the other with the Central Bank, and a copy to be circulated to all banks operating in the UAE .

This Charter has been approved unanimously by the Emirates Banks Association General Assembly meeting held in Dubai on 14 th April,2004 .

Abdullah Ahmed Al-Ghurair
Chairman
Emirates Banks Association