Compliance is mandatory or banks risk regulatory action
The UAE’s Central Bank has issued a sweeping directive putting an end to the use of instant messaging platforms, including WhatsApp, across banks and licensed financial institutions for financial services and customer data handling. The move is designed to tighten data security standards and put a stronger shield around consumer protection, reshaping how the sector communicates with customers from here on out.
The directive was issued to the banking sector via an official notice on April 17 with full compliance by April 30, 2026. Institutions that fail to comply by the deadline may face potential regulatory action.
So, what does this all entail?
Under the new rules, banks are not allowed to use any instant messaging platforms including WhatsApp for a range of activities, including communication, transaction processing and data exchange. This means that banks and other institutes will not be able to receive customers’ information, initiate any transaction or transmit authentication credentials such as passwords or one-time passwords.
This includes the exchange of documents which could contain personal or financial data.
The regulator said the move comes amid growing concerns over the rising use of messaging apps as informal service channels, which can expose both customers and institutions to a range of risks. These include fraud, impersonation, account takeovers and social engineering attacks, along with the risk of sensitive information being disclosed without authorisation.
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The Central Bank noted that information shared on messaging platforms could be stored and processed outside the UAE.
All financial institutions will now be required to rely on approved channels, including mobile banking applications, online platforms, call centres and physical branches.
Institutions are required to confirm compliance and set out corrective measures by the end of April 2026. Failure to comply could lead to supervisory action, financial penalties, or other regulatory measures.
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