Dubai Financial Services Authority Provides Regulatory Framework for Future of Finance
The Dubai Financial Services Authority (DFSA) continues to improve its regulatory framework by focusing on the future of finance.
The DIFC is now home to more than 3,200 companies and nearly 28,000 employees. Within this larger population, the DFSA regulates 521 financial services companies, registers 17 auditors and 108 designated non-financial companies. Total assets of financial services companies are approaching $ 200 billion. The pipeline of companies wishing to be regulated by the DFSA continues to grow.
Fadel Al Ali, President of the DFSA, said: “We are exploring and adopting innovative solutions to strengthen our regulatory role, as part of our digitization campaign. “
To encourage innovation within the DIFC and protect the market against risks, the DFSA has set up the Innovation Testing License (ITL) program.
This year, 26 companies expressed their interest in the program and 17 of them were invited to submit an application; these are currently under review. Applicants include companies interested in providing payment and money transmission services, wealth management, tokenized payment services, and biometric financial services.
The DFSA hosts RegTech events focused on driving compliance through innovation. The most recent event highlighted the importance of this area and saw demonstrations from seven Reg-Tech vendors in the area of cyber risk mitigation, data analytics, transaction monitoring and of eKYC. Cyber risk continues to be a concern for companies across all industries, especially the financial services industry which is often targeted. In order to foster a secure environment for companies operating within the DIFC, the DFSA last year launched the Cyber Threat Intelligence Platform (TIP), the first such platform run by a regulator in the region, creating an information sharing system for DIFC companies. TIP has over 175 registered members and continues to provide them with information on an average of over 100 new threats per week. TIP members also contribute to the platform by sharing their knowledge and expertise. This has been beneficial for the DFSA in terms of strengthening relationships with partners to collaborate in the fight against a common threat.
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