UAE Central Bank bans WhatsApp, messaging apps in financial customer communications

The Central Bank of the UAE (CBUAE) has ordered all licensed financial institutions to stop using instant messaging platforms, including WhatsApp, to communicate with customers, citing customer protection and data security concerns.

In a circular issued to banks, insurers, exchange houses and finance companies, the central bank said the move aims to safeguard customers and protect the reputation of the UAE’s financial sector. Financial institutions were instructed to submit updates on their compliance by Thursday, April 30.

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Banks have already begun notifying customers via SMS, email and app alerts that messaging platforms will no longer be used for correspondence or service requests.

The central bank said it had identified risks linked to the use of such platforms, including fraud, identity theft, account takeovers and social engineering, as well as concerns over authentication, transaction integrity and data confidentiality.

It also warned of risks related to cross-border data processing and storage, noting that customer information could be accessed or stored outside the UAE, raising regulatory and audit challenges.

Under the directive, financial institutions are prohibited from using messaging apps to request or share customer data, initiate or process transactions, or conduct authentication procedures such as one-time passwords or verification codes.

The central bank said institutions must ensure all customer data and transaction records are securely stored within the UAE and that no new interactions relying on instant messaging platforms are initiated.