Don961 » May 20th, 2021
THE ARAB MONETARY FUND PUBLISHES A DOCUMENT ON “OPEN BANKING REGULATORY PRINCIPLES” IN THE FRAMEWORK OF THE ARAB REGIONAL FINTECH WORKING GROUP
19th May, 2021
The document sheds light on the opportunities that open banking services offers to the financial and banking institutions customers
The regulatory requirements to initiate open banking services in the Arab countries
The importance of creating a stimulating environment to encourage innovation in open banking
The need to protect users of open banking and finance services and the environmental and social responsibilities within the framework of these services
The Arab Monetary Fund (AMF), in collaboration with the Arab Regional Fintech Working Group members, published today a document titled “Open Banking Regulatory Principles”, as part of the AMF ongoing efforts to support digital financial transformation in the Arab countries, which plays a major role in growing the level of financial inclusion and contributing to the development of innovative financial services.
The document highlights the benefits that open banking services may create for the financial and banking institutions customers, 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 Arab Regional Fintech Working, portrays a set of regulatory principles that enables the development of a solid and modern framework for regulating open banking services, in addition to providing information on open banking services systems in a number of markets.
The document aims as well to assist Arab central banks and supervisory authorities to coop with international best practices in terms of open finance and open banking operations and support the initiation and growth of these services in the Arab countries while mitigating the various associated risks.
The document introduces a set of regulatory principles, namely nine principles, covering the importance of enabling use cases prior to full-fledged launch of the open banking regulations, the need for planning for a regulatory mechanism that encourages regulated entities to take-up within set timelines. Also, enable permission-based access technologies prior to widespread adoption of Open API infrastructure in order to avoid delay innovation, and to drive the early adoption of industry standards on regulated entities and certification of Account Information Service Providers/ Payment Initiation Service Providers (PISP/AISPs).
The principles also promote ensuring the adoption of robust data governance and protection frameworks by service providers and third parties, as well as requiring consumer protection and liability frameworks to be adopted across Open Banking ecosystems. Moreover, they recommended a phased approach in order to properly achieve the anticipated national strategic objectives and use cases and highlighted the different aspects of scope expansion and supervising non-bank service providers.
Within the same context, the document recommends the Arab supervisory authorities to take into account the importance of enabling innovation and activating use cases to allow consistent development of legislations, when designing frameworks for open banking operations, and encouraging early collaboration with service providers, to set the proper specifications and standards. This is along with a contingency plan for implementation delays including the availability of API infrastructure components, as well as ensuring robust protection for consumers of financial and banking services.
It worth mentioning that the document included number of Arab central banks’ experiences in developing open banking operations, foremostly the pioneering experience of the Central Bank of Bahrain, which launched its own open banking operations framework back in 2018. It also addresses the launch of a comprehensive framework for open banking operations by the Saudi Central Bank, and the efforts of the Central Bank of the United Arab Emirates.
On this occasion, His Excellency Dr. Abdulrahman Al Hamidy, Director General Chairman of the Board of Directors of the Arab Monetary Fund, praised the ongoing efforts of the Arab Regional Fintech Working Group in issuing guidelines aiming at contributing to the development of the Fintech industry in the Arab countries, pointing out the importance of this regulatory document in serving as a guide to create an environment that stimulates the growth of these operations, supporting the financial inclusion and digital financial transformation in Arab countries, and creating additional opportunities for sustainable development.
27 page report – You can download the report by clicking on the link
MilitiaMan » May 20th, 2021
The above from the AMF comes off the last day of 300 Bankers representing 20 countries in the ME Region at the Arab Digitial Transformation Summit.
Here they talk about Financial Technology, Fin – Tech – A blockchain oriented technology. It is for transparency, a level playing field that has eyes on corruption. That is what Open Banking is about.
They have some very heavy hitters in those 20 countries. Saudi, United Arab Emirates, Bahrain, Abu Dahbi ,etc. Look at the talk from the UST today about global taxation.
They mention the G20, too. Then there is Iraq talking about the same thing!! TAXATION! Same day as the UST and the AMF all having had meetings on compliance, etc..
There are no coincidences in this anymore now were there any. What we are seeing is a global interconnection at and on a global scale.
The whole world is now about to have to deal with a level playing field with blockchain – fintech in respect to taxation.
The UST has been hard at and from the looks of the article they have global support. They start at 15% flat tax across they board. People don’t like it they may raise it.. lol I’ll bet that is why there is such heartened support.. lol
Putting this together now is all coordination at the highest levels. We talked about the BUNA system this last couple weeks and then the finish up of the Arab Digital Transformation Summit and boom! There is the ADIB system!!
Then look no further, the AMF published a statement, Iraq published a statement and as did the US Treasury.
All of this is oriented on a new digital transformation to level the playing field. Both Iraq and Viet Nam are to have similar managed float currency regimes. Fascinating this is all coming to the forefront by the largest financial entities in the world. Today! This is looking like they have things all ready to go now..
The “Dutch Disease” and the GDP Data for Viet Nam with an upgrade to their credit rating by Moody’s suggests that both countries reserves and economic circumstances may allow for the deletion of zeros for both.. We shall see.. imo ~ MM
U.S. Department of the Treasury
Office of Public Affairs
Press Release: FOR IMMEDIATE RELEASE May 20, 2021
Contact: Alexandra LaManna; Press@Treasury.gov
READOUT: U.S. Department of the Treasury’s Office of Tax Policy Meetings
Over the last two days, leaders from the Office of Tax Policy at the U.S Department of the Treasury participated in meetings with the Steering Group of the Inclusive Framework on base erosion and profit shifting (BEPS) as part of the Organization for Economic Cooperation and Development (OECD) / G20 international tax negotiations. As part of those meetings, discussions on the global corporate minimum tax rate began in earnest.
Treasury expressed its belief that the international tax architecture must be stabilized, that the global playing field must be fair, and that we must create an environment in which countries work together to maintain our tax bases and ensure the global tax system is equitable and equipped to meet the needs of for the 21st century global economy.
It is imperative to work multilaterally to end the pressures of corporate tax competition and corporate tax base erosion. Treasury reiterated that with the global corporate minimum tax functionally set at zero today, there has been a race to the bottom on corporate taxes, undermining the United States’ and other countries’ ability to raise the revenue needed to make critical investments.
Treasury made clear that a global corporate minimum tax rate would ensure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and would spur innovation, growth, and prosperity while improving fairness for middle class and working people.
Treasury proposed to the Steering Group that that the global minimum tax rate should be at least 15%. Treasury underscored that 15% is a floor and that discussions should continue to be ambitious and push that rate higher.
Treasury was heartened by the positive reception to its proposals and the unprecedented progress being made towards establishing a global corporate minimum tax.
The Director General of the General Tax Authority reveals the benefits of the digital system
20th May, 2021
The Director General of the General Tax Authority, Shaker Mahmoud Al-Zubaidi, revealed today, Thursday, the benefits of the digital system for Al-Arasat tax.
Al-Zubaidi said in a statement received by Alsumaria News, “A digital system for Al-Arasat tax will be implemented soon,” indicating that “the tax will be archived to eliminate the paper system.”
He added that “the benefit of the digital system is to end cases of tax evasion, preserve tax revenues and end cases of taxpayers extortion,” noting that “the digital system that was linked with the real estate registration departments contributed to eliminating fraud, maximizing revenues and helping to collect taxes in the correct manner.”
The digital system has ended bureaucratic procedures and facilitated administrative procedures,” the statement stressed. And he added, “With direct follow-up by the Prime Minister and Minister of Finance, the digital system was implemented and met with wide approval and acceptance by the higher government agencies.”
He concluded by saying: “The digital system was applied in the largest branches Baghdad “Markaz’s Karkh tax – and Karrada branch tax” and after this impressive success that has been achieved, it will be implemented in 43 tax branches in the next few days. LINK
State Bank of Vietnam Decree No. 70 (2014) takes the position that Vietnam’s exchange rate regime is a “managed floating system that the State Bank of Vietnam defines on the basis of a basket of currencies of countries that establish a cooperation of commerce, loaning, debt repayment and investment with Vietnam, which conforms to macroeconomic objectives in each period.”36
The Dutch Disease and Iraq’s Foreign Exchange Rate. By Dr. Zeki Fattah
Therefore, it is high time now to adopt a flexible exchange rate for the Dinar vis-à-vis the US Dollar: i.e., raise it when its national reserve of foreign currencies is high, and lower it when the reserve is low; benefiting the country on the way up and on the way down. LINK
ADIB launches Digital Banking Platform in Iraq
20th May, 2021
Abu Dhabi Islamic Bank (ADIB) has said it will strengthen its presence in Iraqi market by launching “ADIB Direct“, a digital platform that meets the growing business demands in Iraq.
ADIB Direct is an intuitive digital banking platform that integrates a suite of corporate banking solutions into a single, streamlined interface. The platform offers cash management solutions, cashflow forecasting, and foreign exchange services.
Abdullah Al Shehhi, Head of International Banking Group at ADIB said:
“At ADIB, we believe we play an important role in supporting Iraq’s local economy by providing businesses the banking services they need to help them thrive and achieve their financial goals.
Through ADIB Direct, we enable companies to efficiently manage their cash payments, liquidity, trade finance, supply chain and foreign exchange needs so they have more time to focus on their business.”
Source: Dinar Recaps
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