The Central Bank issues a report on emerging risks in the financial sector in light of the COVID-19 pandemic
The Central Bank of the United Arab Emirates issued the report "Risk Patterns in the Financial Sector", which was prepared by the Subcommittee on Regulatory Bodies, chaired by the Central Bank, and includes the Abu Dhabi Global Market, the Dubai Financial Services Authority, the Executive Office for Combating Money Laundering and the Financing of Terrorism, and the Financial Information Unit .
The report seeks to identify emerging risks in the financial sector and raise awareness about them, with the aim of enabling relevant regulatory bodies and financial institutions to prepare to address these risks in a timely manner.
The report revealed the most common risks among financial institutions and the best practices used to confront them, as a group of financial institutions were selected on an experimental basis to determine the exceptional risks prevailing in the sector, which were exacerbated by the Covid-19 pandemic.
The risk patterns identified in the report include money laundering, terrorist financing, fraud, bribery, corruption, charitable and disaster fraud, cyber attacks and external fraud caused by the COVID-19 pandemic.
The report indicated that the risks derived from the specific patterns are in addition to the risks described in the national assessment of the risks associated with money laundering and terrorist financing crimes, as they are likely to be more prevalent in the financial sector, such as the increase in dealing with unlicensed financial service providers and the escalating risks of cyber attacks.
The report shows the effective methodologies applied by financial institutions to identify and identify risks, mitigate them and find solutions to confront them, in addition to analyzing the observed risk trends.
Commenting on the outputs of the report, His Excellency Khalid Mohammed Balama, Governor of the Central Bank of the Emirates, said: “This report comes within the framework of continuous efforts to confront trends and developments related to money laundering and terrorist financing and emerging risk patterns in the financial sector in light of the Covid-19 pandemic. Risks are still in the early stages, but the Central Bank has issued this report in cooperation with the relevant regulatory authorities, in order to be a main reference for financial institutions regarding patterns and indicators of risks related to the pandemic, in order to help them know and reduce emerging risks, which contributes to maintaining the safety of The financial system of the state.
Follow our latest local and sports news and the latest political and economic developments via Google news