Legislation Details
- Full Title: Federal Law of Credit Information
- Law Type: Federal Law
- Law Number: [no number] of 2010
- Issued Date: 07 Oct 2010
- Effective Date: 14 Oct 2010
- Official Gazette: No. 513
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 52
- Chapters/Parts: 0
- Amendments: 1
Summary
The Federal Law of Credit Information regulates the collection, processing, and use of credit information in the United Arab Emirates. The law establishes a central company responsible for managing credit information and sets out the rights, obligations, and penalties related to credit data. The law aims to facilitate access to credit information while protecting individual privacy and ensuring the security of credit data. This law is important for businesses and individuals in the UAE who need to access credit reports and understand their creditworthiness. It provides a framework for the responsible use of credit information to support financial decision-making. (Federal Law of Credit Information, 2010)
What is the scope and purpose of this law?
The Federal Law of Credit Information applies to the credit information company established under the law, information providers who supply credit data, and information report recipients who access credit reports. The law regulates the request, collection, storage, analysis, use, and protection of credit information in the UAE. Its purpose is to organize the credit information ecosystem and ensure the responsible management of credit data. (Federal Law of Credit Information, 2010, Art. 2, 3)
What are the key definitions under this law?
The law provides the following key definitions:
- State: The United Arab Emirates
- Central Bank: The Central Bank of the United Arab Emirates
- Credit Information: A person's financial data, obligations, payment history, assets, and other information related to their creditworthiness
- Company: The entity established to carry out credit information activities
- Information Provider: Any entity that provides credit information to the Company
- Code of Conduct: Controls applicable to information providers and report recipients
- Information Report Recipient: A person entitled to receive a credit information report
- Credit Record: The record of a person's credit information collected by the Company
- Information Report: A report issued by the Company containing a person's credit information
- Creditor Index: A score-based index issued by the Company indicating a person's creditworthiness
- Person: Any natural or legal person on whom credit information may be provided
(Federal Law of Credit Information, 2010, Art. 1)
What are the main obligations and requirements?
The key obligations under this law include: 1. The Company must organize the request, collection, storage, analysis, categorization, use, and circulation of credit information. (Federal Law of Credit Information, 2010, Art. 9) 2. The Company must prepare and process credit records in a timely, appropriate, and secure manner. (Federal Law of Credit Information, 2010, Art. 9) 3. The Company must issue credit information reports and other related products. (Federal Law of Credit Information, 2010, Art. 9) 4. Information providers must send credit information to the Company in accordance with the Company's systems and the Central Bank's controls. (Federal Law of Credit Information, 2010, Art. 12) 5. The Company must not disclose or reveal any information in its possession to third parties, except as permitted by the law. (Federal Law of Credit Information, 2010, Art. 11)
What licensing, registration, or approval requirements exist?
The law does not specify any licensing, registration, or approval requirements for individuals or companies. It states that the Cabinet shall issue a resolution determining the Company's articles of association and operation mechanism. (Federal Law of Credit Information, 2010, Art. 9)
What rights and protections does this law provide?
The law provides the following rights and protections: 1. A credit information report recipient must obtain the approval of the person about whom the report is requested, prior to the issuance of the report. (Federal Law of Credit Information, 2010, Art. 6) 2. Credit information, records, and reports are confidential and can only be accessed or revealed with the written consent of the person or their representative, or by request of the competent judicial authorities. (Federal Law of Credit Information, 2010, Art. 8) 3. The collection and circulation of information directly or indirectly related to a person's private life, opinions, beliefs, or health condition is prohibited. (Federal Law of Credit Information, 2010, Art. 5)
Which authorities or bodies are responsible for enforcement?
The Central Bank of the UAE is the controlling authority responsible for overseeing the activities of the credit information company. The Central Bank has the following powers under the law: 1. Controlling and overseeing the Company's performance of its assigned tasks. (Federal Law of Credit Information, 2010, Art. 16) 2. Setting up the controls for the Company's activities, the Code of Conduct, and related matters. (Federal Law of Credit Information, 2010, Art. 16) 3. Issuing instructions or directions to the Company. (Federal Law of Credit Information, 2010, Art. 16)
What are the penalties for non-compliance?
The law imposes the following penalties for non-compliance: 1. A minimum term of 2 years' imprisonment and/or a minimum fine of AED 50,000 for: - Revealing credit information, reports, or records without authorization - Obtaining credit information or reports without the required approvals or by using fraudulent means - Violating the confidentiality of credit information, records, and reports - Misrepresenting or submitting incorrect credit information to the Company (Federal Law of Credit Information, 2010, Art. 17) 2. Imprisonment and/or a minimum fine of AED 10,000 for any other violation of the law or its enforcement orders. (Federal Law of Credit Information, 2010, Art. 18) 3. Aggravated penalties for crimes committed by public servants or Company employees. (Federal Law of Credit Information, 2010, Art. 19)
What fees, charges, or financial provisions are specified?
The law does not specify any fees, charges, or financial provisions related to the credit information activities. It states that information providers must provide the Company with the required credit information without imposing any financial burdens on the Company. (Federal Law of Credit Information, 2010, Art. 14)
What exemptions or exceptions apply?
The law does not provide any explicit exemptions or exceptions. It states that any natural or legal person, except for the Company, is prohibited from engaging in credit information activities. (Federal Law of Credit Information, 2010, Art. 10)
How are disputes resolved under this law?
The law does not specify any dispute resolution mechanisms. It states that the Executive Regulations of the law will determine the mechanism for submitting and examining complaints related to credit information. (Federal Law of Credit Information, 2010, Art. 22)
What are the key deadlines and time limits?
The law does not specify any deadlines or time limits, except that the Company must prepare and process credit records in a timely manner. (Federal Law of Credit Information, 2010, Art. 9)
How does this law interact with other UAE legislation?
The law references several other UAE federal laws, including: - Federal Law No. 1 of 1972 on Ministries Powers and Ministers' Authorities - Federal Law No. 7 of 1976 on the Establishment of the State Audit Bureau - Federal Law No. 10 of 1980 on the Central Bank, Monetary System, and Banking Profession - Federal Law No. 8 of 1984 on Commercial Companies - Federal Law No. 5 of 1985 on Civil Transactions - Federal Law No. 3 of 1987 on the Penal Code - Federal Law No. 10 of 1992 on the Law of Evidence in Civil and Commercial Transactions - Federal Law No. 18 of 1993 on Commercial Transactions - Federal Law No. 4 of 2000 on the UAE Securities and Commodities Authority and Market - Federal Law No. 4 of 2002 on Money Laundering Criminalization - Federal Law No. 1 of 2006 on Electronic Transactions and Commerce - Federal Law No. 9 of 2006 on the Regulation of Population Record and ID Cards (Federal Law of Credit Information, 2010, Preamble)
When did this law come into effect?
The Federal Law of Credit Information was issued on 07 October 2010 and came into effect on 14 October 2010, the day following its publication in the Official Gazette No. 513. (Federal Law of Credit Information, 2010, Effective Date)
Source Documents
This article analyses Federal Law of Credit Information 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.