Organization & Development
In order to enhance and reorganize the works in departments of the Central Bank, in keeping with the overall development of the State, and developments in the banking system in the country and international banking practices, the Board of Directors of the Central Bank issued Resolution No. 56/3/93 dated 19/4/93, reorganizing the structure of the Central Bank. According to this new structure there are now five branches, seven departments, seven divisions, and Risk Bureau. Each department consists of an appropriate number of sections to facilitate discharge of its functions as defined in the said resolution.
Banking Supervision and Examination Department
The Banking Supervision and Examination Department is responsible for supervising the Banking Sector, including local banks, branches and representative offices of foreign banks, moneychangers, finance companies, brokers in shares and financial instruments, financial investment companies and financial consultancies. It is not responsible for regulating the insurance sector of the economy (which comes under the purview of the Ministry of Economy and Commerce) or for regulating the Abu Dhabi Securities Market and the Dubai Financial Market (both of which are supervised by the Emirates Securities and Commodities Market and Authority).
The Department is responsible for setting the standards and regulating the Sector (which it does through the issue of Circulars and Notices), and for monitoring compliance and performance by detailed and regular examination of all the entities for which it is responsible. In addition, it processes applications for licences and various forms of approval required, and attends to the formalities of licence renewal.
The Anti-Money Laundering and Suspicious Cases Unit also operates from within the Department. This Unit is the heart of the UAE’s effort to combat money laundering. All suspicious cases, from whatever source, are reported to, and investigated by, the Unit. In addition, the Unit acts as Banking Sector Ombudsman, determining the merit and seriousness of complaints raised by customers and other third parties against the entities supervised by the Department.
International relationships with other regulatory authorities and supranational institutions (such as: the Bank for International Settlements; the Financial Action Task Force; the International Monetary Fund; and the World Bank) also fall within the terms of reference of the Department.
Information Technology Division
TheInformation Technology Division has also received particular attention aimed at developing computer systems in such ways as to enhance performance of the various departments and divisions and establish a direct electronic link with banks operating in the country. Within such context, the Central Bank proceeded with the execution of the "Electronic Switch" project which aims to connect the automated teller machines (ATMs) of banks operating in the country through a unified network managed and supervised by the bank. The "Electronic Switch" provides services such as cash withdrawals, balance enquiry and point of sale (POS) services to banks′ customers. The clearing system currently in use has been developed into an automated system, which ensures more accurate inter-bank settlements, saves a lot of time and effort and gives a positive impression of the developments witnessed by the banking sector, which accompanies growth and developments in all sectors of the country′s economy. Within the Central Bank, the Information Technology Division undertook updating and development of the systems, programs and equipments used in the bank. The (IBM 4381) mainframe has been replaced by the more advanced (IBM AS/400) using Equation/3 software in place of the previous accounting system (KIBS). The new system is characterized by higher speed and accuracy and the new software is more comprehensive, less complicated and it uses "Real Time".
Old PC′s have also replaced by new, advanced systems and modern laser printers have replaced the old printers. All departments and branches of the bank have been connected by means of a modern network, which connects the mainframe with all systems and printers in the departments and branches of the bank.
Banking Operations Department
According to the new organization chart, the Banking Operations Department now consists of five sections: the a) Currency & Coins Issue Section, b) the Cash Desk, c) the Current Accounts, d) the Banking Operations Monitoring Section e) and the Clearing House. Under the supervision of this department, new banknotes have been printed and launched. These feature the most up-to-date security marks and maintain technical specifications of the highest standards in terms of printing techniques, paper and inks. The project of reducing the size of coins was also completed. As per resolutions issued by the Board of Directors, the department has also issued several gold and silver commemorative coins in celebration of various national occasions.
Equipment and machines used for counting, checking, sorting and packaging of banknotes have also been updated. New, more technically advanced machines have been bought, which have contributed to the enhanced, speedy and efficient performance of the department′s tasks.
Research and Statistics Department
The Research and Statistics Department has continued to develop the skills and capabilities of its staff in the three main sections of the department: General Statistics, Monetary Statistics, and the Library, with a view to enhancing quality of data, studies and publications issued by the department, namely, the Annual Report, the Economic Bulletin and the Statistical Bulletin. To achieve such goals, the department has utilized the most relevant up-to-date computer systems and programs, and dispatched a large number of its employees for training in organizations inside and outside the country, particularly to the Arab Monetary Fund and the International Monetary Fund (IMF).
A new section formed in Risk Bureau, "Customer Rating System" allows bankers to check on the spot rating of certain bad debtors.
The creation of Risk Bureau as an independent department in the Central Bank in 1982, came in response to Article 104 of Union Law No. 10/1980 concerning the Central Bank, the Monetary System and Organization of Banking.
Risk Bureau undertakes to provide client′s related information that aims to help lending institutions operating in the U.A.E. to formulate, as accurate as possible, a profile about applicants, application for loan or seeking any sort of banking services. This information is provided through the following systems:-
1. Corporate Credit System
Financial Institutions, subject to the provision of the Risk Bureau regulations, furnish the Risk Bureau with data showing identity of their customers and submit statements on the credit position of each of their customers when used credit facilities extended reach or exceed AED 250,000 or the equivalent. Financial Institutions submit their data periodically as at the end of March, June, September and December of each year. Risk Bureau provides each Financial Institution with information on consolidated credit position of its reported customers as soon as the data are compiled. Risk Bureau also furnishes to Financial Institutions, upon special request, a statement containing the consolidated credit extended by all Financial Institutions to this customer who applies for facilities to the financial institution. This existing system will be replaced with a new proposed on-line system within the next few months. This new system will allow the Financial Institutions to report their customers details electronically, and enable them to obtain up-to-date consolidated information at any time.
2. Returned Unpaid Cheques System
In order to reduce the number of returned unpaid cheques, to ensure better discipline among bank customers and to enhance the standing of the cheque as a payment instrument in the country, Central Bank had decided in June 1993 the following :-
Current Account holders whom at least 4 cheques get returned unpaid due to insufficient funds, with a maximum time span between the first cheque and the fourth cheque of one year, their current accounts must be closed, remaining cheques collected and the name reported to the Risk Bureau along with the amounts of each returned cheque. This information is used to complete a list of "Current Account Restricted Persons", which is available to all participating banks electronically.
3. Customer Rating System
On 15 October 1998 a RB Customer Rating System was established to provide rating for banks customers, both Resident / Non Resident in the U. A. E. based on the data fed on line by the bankers. The Central Bank RB Customer Rating System compiles the information and makes it available for all banks.
This system allows any bank to check on line instantly before giving loans to a particular borrower, whether or not the borrower is badly rated in other banks without fulfilling his / her obligations.
The system which was welcomed by most banks is being used intensively.
Administration Affairs Department
The Administrative Affairs Department consists of the following sections:
Maintenance and Buildings Section
Correspondence and Archive Section
Security and Guards Section
The department carries out administrative and technical operations and services, which facilitate tasks of other departments at the head office and branches of the Bank.
Through its various sections, the department contacts government agencies and private organizations in respect of its assigned tasks and duties