Legislation Details
- Full Title: Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services
- Law Type: Federal Decree-Law
- Law Number: No. (28) of 2023
- Issued Date: 31 Mar 2023
- Effective Date: 13 Jul 2023
- Official Gazette: No. 749
- Sector: Justice and Judiciary
- Status: Active
- Number of Articles: 88
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution provides the executive regulations for Federal Decree-Law No. (46) of 2021 on Electronic Transactions and Trust Services. It establishes the licensing framework, obligations, and requirements for trust service providers and qualified trust service providers operating in the UAE. The Resolution aims to regulate the provision of electronic transactions and trust services to ensure their reliability, security, and compliance with relevant laws and regulations. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 1-37) The Resolution is significant for businesses and individuals in the UAE as it sets the legal and operational parameters for the use of electronic signatures, seals, time stamps, and other trust services. It provides clarity on the rights, obligations, and penalties related to these services, which are increasingly important in the digital economy. The Resolution also empowers the Telecommunications and Digital Government Regulatory Authority (TDRA) to oversee and enforce compliance with the regulatory framework. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 1-37)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to provide the executive regulations for Federal Decree-Law No. (46) of 2021 on Electronic Transactions and Trust Services. It applies to all trust service providers and qualified trust service providers operating in the UAE. The purpose of the Resolution is to regulate the provision of electronic transactions and trust services to ensure their reliability, security, and compliance with relevant laws and regulations. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 1)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- Decree-Law: Federal Decree-Law No. (46) of 2021, on Electronic Transactions and Trust Services.
- Competent Authority: The authority that issues the Trade License.
- Termination Plan: A document that sets out the procedures related to the Licensee's plan and preparedness to terminate the services outlined in the License.
- Service Practice Statement: A statement of practices used by the Trust Service Provider and the Qualified Trust Service Provider in the management and operation of services.
- Service Policy: A specific set of rules setting out policies, procedures, technical data, roles and responsibilities related to the management and operation of Trust Services and Qualified Trust Services.
- Subscriber: A Person that enters into a contract with the Trust Service Provider or with the Qualified Trust Service Provider to benefit from Trust Services or Qualified Trust Services provided by such provider.
- Status of Qualified Service Provider: The status granted or withdrawn by the TDRA, as per the term of qualification and as listed in the UAE Trust List.
- Encryption: A process intended to protect the confidentiality of data and information by converting data from a readable and understandable format into a non-understandable format in the form of codes, characters and figures.
(Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 1)
What are the main obligations and requirements?
The Resolution imposes the following key obligations on trust service providers and qualified trust service providers: 1. Abide by all procedures and use application forms determined by the TDRA when applying for a license. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 2) 2. Notify the TDRA within one week of any amendments or changes to the information submitted in the license or renewal application. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 13) 3. Obtain prior approval from the TDRA for adjustments or changes to certain data and information, including details of the establishment, ownership, and business office. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 13) 4. Comply with the obligations set out in Article 15 (for Licensees) and Article 16 (for Qualified Trust Service Providers) of the Resolution. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 15-16) 5. Activate the Termination Plan upon suspension or revocation of the license. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 12, 18)
What licensing, registration, or approval requirements exist?
The Resolution establishes the following licensing requirements for trust service providers and qualified trust service providers: 1. The TDRA shall publish information on all procedures, application forms, and required information for obtaining a license. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 2) 2. The license application must include various documents and data, such as a copy of the trade license, details of the applicant's business office, a Termination Plan, a financial report, and a bank guarantee. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 2) 3. The TDRA shall review and examine the license application, and may approve or reject it based on the applicant's fulfillment of the requirements. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 4) 4. The license term is two years, and the licensee must apply for renewal at least three months prior to the expiry of the license. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 6-7) 5. The TDRA may suspend or revoke the license if the licensee fails to comply with the requirements. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 12)
What rights and protections does this law provide?
The Resolution does not explicitly mention any specific rights or protections granted to individuals, workers, businesses, or other parties. The focus of the Resolution is on establishing the regulatory framework for trust service providers and qualified trust service providers, including their licensing, obligations, and enforcement mechanisms. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023)
Which authorities or bodies are responsible for enforcement?
The Telecommunications and Digital Government Regulatory Authority (TDRA) is the primary authority responsible for the enforcement of this Resolution. The TDRA's key roles and powers include: 1. Issuing the license for trust service providers and qualified trust service providers. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 4-5) 2. Reviewing and examining license applications and renewal applications. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 3, 9) 3. Suspending or revoking the license of trust service providers and qualified trust service providers. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 12) 4. Maintaining the UAE Trust List and granting the status of qualified service provider. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 4, 34)
What are the penalties for non-compliance?
The Resolution does not specify any penalties for non-compliance. It states that the application of the procedures for suspending or revoking the license shall not preclude the application of the administrative sanctions or the penalties set forth in the Federal Decree-Law No. (46) of 2021 on Electronic Transactions and Trust Services. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 12)
What fees, charges, or financial provisions are specified?
The Resolution specifies the following financial provisions: 1. The license applicant must provide a proof of payment of the license application fees. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 2) 2. The license renewal applicant must provide a proof of payment of the license renewal application fees. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 7) 3. The license applicant must provide a financial report for the last fiscal year, drawn up by an auditor, confirming the availability of financial resources equivalent to AED 5,000,000 (five million dirhams). (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 2) 4. The license applicant must provide a bank guarantee or security as identified by the TDRA, which shall be automatically renewed upon the license renewal. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 2)
What exemptions or exceptions apply?
The Resolution does not specify any exemptions or exceptions. It states that the TDRA may relieve the license applicant from certain licensing requirements set out in the Resolution and the resolutions issued by the TDRA. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 3)
How are disputes resolved under this law?
The Resolution provides the following dispute resolution mechanism: 1. The license applicant or the license renewal applicant whose application is rejected may submit a new application or file a grievance within 14 days against the TDRA's rejection decision. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 11) The Resolution does not specify any other dispute resolution mechanisms, such as courts, arbitration, or grievance committees.
What are the key deadlines and time limits?
The Resolution specifies the following key deadlines and time limits: 1. The TDRA shall complete and examine the license application within one month following the completion date of the application. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 3) 2. The license renewal application must be submitted at least 3 months prior to the expiry of the license term. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 7) 3. A licensee whose license term expires without getting the license renewed 30 days prior to the license expiry date shall be deemed in breach. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 8) 4. A license applicant or license renewal applicant whose application is rejected may file a grievance within 14 days against the TDRA's rejection decision. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 11)
How does this law interact with other UAE legislation?
The Resolution references the following related UAE legislation: 1. Federal Decree-Law No. (46) of 2021 on Electronic Transactions and Trust Services, which this Resolution provides the executive regulations for. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Art. 1) 2. Federal Decree-Law No. (1) of 1972 on the Competences of Ministries and the Powers of Ministers, as amended. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Preamble) 3. Federal Decree-Law No. (14) of 2021 Establishing the Federal Authority for Identity, Citizenship, Customs and Port Security. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Preamble) 4. Federal Decree-Law No. (45) of 2021 on the Protection of Personal Data. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Preamble) 5. Federal Decree-Law No. (42) of 2022 Enacting the Civil Procedure Code. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Preamble)
When did this law come into effect?
This Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services was issued on 31 March 2023 and will come into effect on 13 July 2023. (Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services, 2023, Issued Date, Effective Date)
Source Documents
This article analyses Cabinet Resolution on the Executive Regulations of Federal Decree-Law on Electronic Transactions and Trust Services for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.