THE ARAB MONETARY FUND ISSUES, WITHIN THE FRAMEWORK OF THE REGIONAL WORKING GROUP FOR MODERN FINANCIAL TECHNOLOGIES IN THE ARAB COUNTRIES, THE DOCUMENT "ORGANIZATIONAL PRINCIPLES FOR OPEN BANKING OPERATIONS"

by **claud39** Thu May 20, 2021 11:02 am

THE ARAB MONETARY FUND ISSUES, WITHIN THE FRAMEWORK OF THE REGIONAL WORKING GROUP FOR MODERN FINANCIAL TECHNOLOGIES IN THE ARAB COUNTRIES, THE DOCUMENT "ORGANIZATIONAL PRINCIPLES FOR OPEN BANKING OPERATIONS"

2021-05-19

The document sheds light on the opportunities offered by open banking services to clients of financial and banking institutions

The regulatory requirements necessary to launch open banking services in the Arab countries

The importance of creating a stimulating environment to encourage innovation in open banking services

The need to protect consumers of open financial and banking services and societal environmental responsibility within the framework of these services

The Arab Monetary Fund, in cooperation with the Arab Regional Working Group for Modern Financial Technologies, issued today the document " Organizational Principles for Open Banking Operations ". The fund’s issuance of the document comes as part of its efforts to support digital financial transformation in the Arab countries, due to its importance in supporting financial inclusion and developing innovative financial services. The document highlights the benefits that open banking services may create for clients of financial and banking institutions, in terms of increased competition, lower costs, encouragement of innovation, and the generation of new business models and use cases .

The document, which was prepared by members of the Regional Working Group for Modern Financial Technologies in the Arab Countries, aims to develop a framework for organizing open banking services, taking into account recent trends in this regard, in addition to providing information on open banking services systems in a number of markets . The goal is also for central banks and supervisory authorities in Arab countries to gain access to international best practices in terms of open financing and open banking operations in order to enable these authorities to prepare for the launch of these services in Arab countries and to encourage growth opportunities, and at the same time hedge against risks that may arise. about her.

The document introduces a set of regulatory principles, nine principles, that address the importance of enabling use cases prior to the full launch of the open banking system, the need for a plan for regulatory mechanisms, enabling authorization-based access techniques prior to the widespread adoption of infrastructure, and the pursuit of early adoption of industry standards for regulated entities. . The principles also include advocacy to ensure the application of strong frameworks for managing and protecting data by service providers, the importance of adopting frameworks to protect consumers of financial services and environmental and societal responsibility for providers of services for open banking operations, in addition to adopting gradations to reflect national strategic goals and use cases, and finally aspects of expanding the scope and imposing Control over non-bank service providers.

In this context, the document recommends that Arab supervisory authorities take into account when designing frameworks for open banking operations, the importance of supporting innovation and enabling use cases to allow the continuous development of legislation to be in line with existing services or services in the process of development, while encouraging early cooperation for service providers, especially with regard to specifications. And standards. The document also recommends the adoption of an emergency plan for delay in implementation, including the availability of infrastructure components for the API infrastructure , and ensuring effective protection for consumers of financial and banking services.

It is noteworthy that the document included the experiences of a number of Arab central banks in developing open banking operations, specifically the pioneering experience of the Central Bank of Bahrain, where the bank launched its own open banking operations framework in 2018. It also addresses the launch of the Saudi Central Bank of a comprehensive framework for open banking operations. And the steps prepared by the Central Bank of the United Arab Emirates in this regard.

On this occasion, His Excellency Dr. Abdul Rahman bin Abdullah Al Hamidi, Director General and Chairman of the Board of Directors of the Arab Monetary Fund, expressed his happiness for the continuing efforts of the Regional Working Group for Modern Financial Technologies in issuing guides and guidelines aimed at contributing to the development of the modern financial technology industry in the Arab countries, pointing to the importance of the document Organizing open banking operations as a guide to create an environment that stimulates the growth of these operations, in order to serve the promotion of financial inclusion and digital financial transformation in the Arab countries and opportunities for sustainable development.

Full report at the link

https://www.amf.org.ae/en/publications/open-banking-regulatory-principles

https://www.amf.org.ae/ar/content/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A-%D9%8A%D8%B5%D8%AF%D8%B1-%D9%81%D9%8A-%D8%A5%D8%B7%D8%A7%D8%B1-%D9%85%D8%AC%D9%85%D9%88%D8%B9%D8%A9-%D8%A7%D9%84%D8%B9%D9%85%D9%84-%D8%A7%D9%84%D8%A5%D9%82%D9%84%D9%8A%D9%85%D9%8A%D8%A9-%D9%84%D9%84%D8%AA%D9%82%D9%86%D9%8A%D8%A7%D8%AA-%D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A%D8%A9-%D8%A7%D9%84%D8%AD%D8%AF%D9%8A%D8%AB%D8%A9-%D9%81%D9%8A-%D8%A7%D9%84%D8%AF%D9%88%D9%84