According to the UAE banking official, the UAE demands to reach a friendly explication with the European Union (EU) soon on the issue of its composition in the list of non-cooperative rules for tax proposals.
Abdul Aziz Al Ghurair said, chairman of the UAE Banking Federation and CEO of Mashreq Group, "We need to reach out. I understand the reasons, and I'm sure the UAE will want to play as a global citizen. I am sure this issue will be solved in the near future. It was due to lack of communication and lack of understanding. The EU will be approached and (the issue will be) discussed; I'm sure there will be a way out."
Al Ghurair stated on media in Banking conference, "Because we have chosen to be an international financial center, so we have to comply with world regulations. We had issues like this in the past and were solved."
The UAE shared the detail on the timeline of the EU with its sovereign legal process, Al Ghurair said, "Be it Saudi Arabia, the UK, the US, Europe or the Far East, the UAE will have to comply with every single regulatory regime in the world."
"We have to comply with all international regulation. We have a regulation here for money-laundering and there is regulation in Europe and the US. We have to comply with all those regulations, but these regulations keep on changing every day. And corresponding banks don't update us with new legislation. So, there is a challenge to remain up-to-date with such regulations. Anti-money laundering Programme takes almost a year or two to be implemented. By then, the regulations have already changed," Al Ghurair said while addressing the BAFT Mena Bank to Bank 2019 Forum in Dubai. "If there are gaps with regard to anti-money laundering, there is no choice for the UAE but close the gaps."
Chairman of the UAE Federation revealed in London Interbank Offered Rate, "There will be more changes in the next two years in Eibor because of changes in Libor setting. Our Eibor was set on the existing Libor mechanism. It is a very transparent methodology we have in terms of compliance, technology, audit etc. But now the world standard has changed, so we have to adjust our Eibor in the UAE," said Al Ghurair.
He added, "We would love to see inter-emirate banking mergers. And that would be a good sign when shareholder sees the benefit in that kind of merger. Most of the mergers have taken place only within each emirate. 50 percent of one shareholder decided to merge, so they made it happen. The synergy is cost-cutting only and they are not offering anything new to clients."