Top News

UAE Bank WhatsApp Use Ban: The Central Bank of the UAE has warned all banks and licensed financial institutions to immediately cease using instant messaging services, such as WhatsApp, to provide financial services or collect customer data as part of their efforts to further enhance consumer protection and data security standards across the country’s financial ecosystem. The regulator also warned that the increased use of instant messaging services by banks poses several risks, including fraud, account takeovers, impersonation and social engineering attacks. In addition to the risk of fraud and impersonation, the regulator also raised concerns over the confidentiality of sensitive customer data when transmitted through messaging services.

The regulator also pointed out the issue of data residency. The use of messaging applications requires customer data to be transmitted through its platform, which may be processed or stored outside the UAE, thereby contravening the data residency requirement that all financial and personal data processed must reside within the UAE.

Financial institutions can no longer use messaging applications for the following activities – UAE Central Bank

Sending or requesting customer information

Initiating or confirming financial transactions,

e.g. transfers, payments or loan disbursements instructions Sending sensitive authentication information such as passwords, PINs and one-time passwords.

Financial institutions and banks must cease the development of new services on messaging platforms and terminate all existing use cases, and migrate customers to secure and approved channels such as online banking services, mobile banking apps, call centres and branch banking operations.

They must also apply stronger internal controls such as employee monitoring and training.

Compliance deadline and enforcement All institutions must submit evidence of compliance and a description of the corrective action taken by 30 April 2026. The central bank has warned of potential supervisory actions and penalties. Building a secure banking ecosystem for customers The policy is part of the UAE’s commitment to ensuring that customers receive secure and confidential banking services and to maintaining the overall integrity of the financial system.

The post UAE Prohibits Banks from Using WhatsApp for Financial Transactions and Customer Data Handling appeared first on NewsX.