In 2021, exchange companies in the UAE handled AED 147.8 billion in outward remittances. This was more than 5% of the total global outward remittances during that year.

2.1.2 Remittance Costs

As of 2020, there are 8.7 million migrants in the Emirates, constituting 88% of the country’s total population and accounting for the majority of the UAE’s workforce. The country’s status as one of the world’s largest job markets and an ideal destination for migrant workers have led to the continued growth of the exchange and remittance industry in the UAE. The main growth drivers that have made an enormous impact on the remittance industry in the UAE are the country’s low remittance costs, the exponential trade growth, and the increase in labor demand.

5.1.2 Requirements

ID

Requirement

BNK-FXDS-REQ-1

The Open Finance Enhanced FX solution(s) MUST allow TPPs to request the sharing of Users' Customer data, FX & Remittance product data and transaction data with the explicit consent of Users. The data MUST be grouped in the appropriate data clusters and use the appropriate permissions. For example:

• Customer Personal Data:

  • Data Cluster Language: “Contact and Party Details”

  • Permissions: ReadPartyUser, ReadPartyUserIdentity, ReadParty

Note: It is expected that FX Houses will be able to provide the same data as LFIs for the above permissions as currently implemented by LFIs.

• FX & Remittance Data:

  • Data Cluster Language: “Your FX & International Transfer Products”

  • Permissions: ReadFXProducts, ReadRemittanceCharges

Note: These are new permissions to be implemented by LFIs and FX Houses

• FX Transactions:

  • Data Cluster Language: “Your Account Transactions”

  • Permissions: ReadFXTransactionsBasic, ReadFXTransactionsDetail

• Note: These are additional permissions to be implemented by LFIs and new permissions for FX Houses

BNK-FXDS-REQ-2

The Open Finance Enhanced FX solution(s) MUST support the following FX & Remittance Products of FX Houses, Consumers and SMEs clients (if applicable):

• Currency Exchange Services (facilitating the buying and selling of foreign currencies)

• Payment and Remittance Services, including Remittances, Corporate Payroll Solutions and International Bill Payments

BNK-FXDS-REQ-3

The Open Finance Enhanced FX solution(s) MUST support the following FX & Remittance Products of LFIs for Consumers and SMEs clients (if applicable):

• Spot FX: The immediate purchase or sale of one currency against another at the current market exchange rate. SMEs and corporates use spot FX to pay suppliers, settle invoices, or convert funds for day-to-day business needs.

The belows FX products are not in the current scope of the Enhanced FX Proposition as they are mostly focused on Corporates and larger SMEs:

• Forward Contracts: Agreements to buy or sell a specified amount of foreign currency at a predetermined exchange rate on a future date. Businesses use forward contracts to hedge against potential currency fluctuations when they know they will need to make or receive payments in the future.

• FX Swaps: Simultaneous purchase and sale of the same amount of currency for two different value dates (e.g., a spot trade combined with a forward trade). Corporates use FX swaps to manage short-term liquidity mismatches in foreign currencies.

• Currency Options: Contracts that provide the right, but not the obligation, to buy or sell a currency at a specific exchange rate on or before a set date. Businesses that want flexibility while protecting themselves from adverse exchange rate movements.

• Multi-Currency Accounts: Bank accounts that allow businesses to hold, send, and receive multiple currencies without needing separate accounts for each currency. SMEs and corporates use multi-currency accounts to simplify international transactions and reduce conversion fees.

• Cross-Currency Payments and Collections: Services to facilitate international payments and collections in multiple currencies. Used by businesses for global trade and cross-border transactions.
  They feature competitive exchange rates and transparent fees.

• FX Risk Management Solutions: Customized solutions to manage and mitigate foreign exchange risk based on a company's specific exposure. Used by exporters and importers managing risks arising from volatile exchange rates. Examples include combination of forwards and options or hedging programs for long-term contracts.

• FX Loans: Loans provided in a foreign currency rather than the local currency (AED). Corporates that earn revenue or have significant costs in a foreign currency may borrow in that currency to avoid FX conversion losses. The feature competitive interest rates while reducing currency mismatch risks.

• Trade Finance with FX Integration: Trade finance products like letters of credit (LCs), bank guarantees, and documentary collections tied with FX solutions. For SMEs and corporates engaged in import and export, integrating FX solutions into trade finance ensures they can lock in rates and manage payment risks effectively. Examples include pre-export financing in foreign currencies. and discounting of export receivables with FX conversion.

• Treasury Services: Advanced FX and cash management services provided by the bank's treasury department. Large corporates with complex financial requirements use these services for risk management, cash flow optimization, and strategic FX planning. Examples include FX advisory services and structured FX products tailored to unique corporate needs.

• Online FX Platforms: Digital platforms provided by banks to manage FX transactions and monitor market rates in real time. SMEs and corporates can execute FX trades, view rates, and manage accounts online. They feature competitive rates and real-time access to currency markets.

BNK-FXDS-REQ-3

The Open Finance Enhanced FX solution(s) MUST enable LFIs to provide the Users' FX & Remittance product data and FX Transaction data in response to TPPs data sharing requests, after receiving authorization from authenticated Users. The data MUST be grouped in the appropriate data clusters.

BNK-DSFX-REQ-4

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to provide the Users' Customer personal data, FX & Remittance product data, and FX Transaction data in response to TPPs data sharing requests, after receiving authorization from authenticated Users. The data MUST be grouped in the appropriate data clusters.

BNK-FXDS-REQ-5

The Open Finance Enhanced FX solution(s) MUST allow Users to inform TPPs which LFIs or FX Houses contain the Customer Personal, FX & Remittance product data and FX Transaction data they want to share.

BNK-FXDS-REQ-6

The Open Finance Enhanced FX solution(s) MUST enable a single consent to retrieve the same Customer Personal, FX & Remittance product data and FX Transaction data for multiple accounts, held with a single LFI or FX House.

BNK-FXDS-REQ-7

The Open Finance Enhanced FX solution(s) MUST allow Users to select the data clusters they want to share with TPPs. The data clusters will be part of the Users' explicit consent to data sharing.

BNK-FXDS-REQ-8

The Open Finance Enhanced FX solution(s) MUST enable the data sharing consent to include a purpose statement for the data sharing.

BNK-FXDS-REQ-9

The Open Finance Enhanced FX solution(s) MUST allow data sharing consents to be either long-lived (up to a maximum consent validity period) or short-lived (lasting 24 hours from the point of authorization or less). For long-lived consents, Users will be able to agree with TPPs the duration of the consent, however, Users will not be able to modify the consent duration at the point of consent.

BNK-FXDS-REQ-10

The Open Finance Enhanced FX solution(s) MUST request Users to authenticate with the LFIs or FX Houses using MFA.

BNK-FXDS-REQ-11

The Open Finance Enhanced FX solution(s) MUST allow authenticated Users, as part of their consent, to select at the LFIs or FX Houses the accounts that they want to share data from.

BNK-FXDS-REQ-12

The Open Finance Enhanced FX solution(s) MUST require Users to authorize the consent with the LFIs or FX Houses before TPPs can make any requests for data sharing.

BNK-FXDS-REQ-13

The Open Finance Enhanced FX solution(s) MUST allow TPPs to receive User’s Customer Personal, FX & Remittance product data and FX Transaction data, in accordance with the authorized consent, without any further User involvement.

BNK-FXDS-REQ-14

The Open Finance Enhanced FX solution(s) MUST enable only users with credentials to access the accounts held with the LFIs or FX Houses to be allowed to provide consent to TPPs for data sharing.

BNK-FXDS-REQ-15

The Open Finance Enhanced FX solution(s) MUST allow Users to provide data sharing consents for shared accounts held at the LFIs or FX Houses.

BNK-FXDS-REQ-16

The Open Finance Enhanced FX solution(s) MUST enable Users to revoke a long-lived data sharing consent either via the LFIs' or FX Houses' dashboards or via the TPPs' dashboards.

BNK-FXDS-REQ-17

The Open Finance Enhanced FX solution(s) MUST enable Users to modify a data sharing consent in order to add or remove accounts held with the same LFI or FX House. Consent modifications and only be done at the TPP. Users MUST authenticate and authorize the modifications with their LFIs or FX Houses.

BNK-FXDS-REQ-18

The Open Finance Enhanced FX solution(s) MUST enable Users to modify a data sharing consent in order to add or remove data clusters that are shared as part of the consent. Additionally, MUST enable Users to modify the purpose of the data sharing. Consent modifications and only be done at the TPP. Users MUST authenticate and authorize the modifications with their LFIs or FX Houses.

BNK-FXDS-REQ-19

The Open Finance Enhanced FX solution(s) MUST allow Users to renew a long-lived data sharing consent, by creating a new consent which is a copy of the previous one and requiring Users to authenticate and authorize it with their LFIs or FX Houses. Consent modification for renewal of consent duration can only be done at the TPP.

BNK-FXDS-REQ-20

The Open Finance Enhanced FX solution(s) MUST NOT allow Users’ Customer Personal, FX & Remittance product data and FX Transaction data to be stored in the API Hub.

5.2 Quote Initiation

5.2.1 Process flow

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5.2.2 Requirements

ID

Requirement

BNK-FXQI-REQ-1

The Open Finance Enhanced FX solution(s) MUST enable TPPs to acquire User’s identity information such as the Emirates ID or passport number as a prerequisite for getting personalised quotes from LFIs or FX Houses. This may happen during the User onboard process or at a later date, before requesting to get any personalised FX & Remittance quotes. TPPs MUST allow users to provide this either:

a) using a data sharing consent with an LFI or FX House holding an account for the Users (as per https://openfinanceuae.atlassian.net/wiki/spaces/Internal/pages/247627777/Open+Finance+Enhanced+FX+Proposition#5.1-Data-sharing-for-FX-%26-Remittances-Services)

b) manually

In both cases TPPs are NOT required to validate the Users' identity information.

The Customer Identification details, MUST include the customer’s:

• Name.

• Emirates ID (or other official ID for expatriates)

• Business license (if the customer is a corporate entity).

• Contact details.

BNK-FXQI-REQ-2

The Open Finance Enhanced FX solution(s) MUST allow Users to provide TPPs with the type of FX & Remittance service (FX conversion, Remittance or both) for which they want to receive quotes.

BNK-FXQI-REQ-3

The Open Finance Enhanced FX solution(s) MUST enable Users to select the FX Houses that they want to receive quotes from, based on the type of the FX Service required. If Users do not select, the Open Finance Enhanced FX solution(s) MUST enable TPPs to request and get quotes from ALL the FX Houses onboarded in the Open Finance ecosystem. This is irrespective of the FX Houses with which Users have accounts and contractual relationships with.

BNK-FXQI-REQ-4

The Open Finance Enhanced FX solution(s) MUST enable Users to select the LFIs that they want to receive quotes from. Users MUST only select LIFs with which they have an active account. If Users do not select, the Open Finance Enhanced FX solution(s) will not request any quotes from any LFIs onboarded in the Open Finance ecosystem.

BNK-FXQI-REQ-5

The Open Finance Enhanced FX solution(s) MUST enable TTPs to offer Users the option to:

a) Get personalised quotes from FX Houses (and/or LFIs). Users selecting this option provide explicit consent to TPPs to share their identity information (e.g. Emirates ID) with Fx Houses/LFIs during the quotation process.

b) Get non-personalised quotes allow from FX Houses only. Users selecting this option do not allow TPPs to share their identity information (e.g. Emirates ID) with Fx Houses during the quotation process.

BNK-FXQI-REQ-6

The Open Finance Enhanced FX solution(s) MUST allow TPPs to initiate the quotation requests to the target FX Houses (and/or LFIs) using the API Hub. TPPs will include in the quote requests all the information required for the FX & Remittance quote generation. The API HUB will be forwarding the quote requests to the FX Houses (and/or LFIs) including the users' provided information required for the generation of the quotes.

The FX & Remittance quote initiation request will contain the following information:

• FX & Remittance service: This may be FX conversion only, Remittance only, or FX conversion with Remittance

• Currency Pair: The two currencies involved in the transaction (e.g., USD/AED, EUR/INR) with clearly indication which is the base currency and which is the quote currency

• Transaction Amount: The amount of the base currency to be exchanged or its equivalent in the quote currency.

• Purpose of Transaction: Purpose of the transaction (e.g., payment for goods, personal remittance, salary payment). Required to ensure compliance with (AML and counter-terrorist financing (CTF) laws in UAE.

• Delivery Instructions: The destination account or remittance details for receiving the funds, if applicable

• Customer Identification: Including the following details (if applicable):

  • Name

  • Emirates ID (or other official ID for expatriates)

  • Business license (if the customer is a corporate entity)

  • Contact details

BNK-FXQI-REQ-7

The Open Finance Enhanced FX solution(s) MUST enable FX Houses (and/or LFIs) to receive the FX & Remittance quote requests and use the Users' provided information to execute their FX & Remittance quotation process in near-real-time. Based on this, FX Houses (and/or LFIs) will be able to calculate the required FX conversion and money transfer charges for the different types of FX & Remittance services and include these in their quote response message. FX Houses (and/or LFIs) may also include any additional conditions, terms or limitations related to the quote, if required and the validity period of the quote. Each quote will have a unique quote id (i.e. reference number)

The FX & Remittance quote will contain the following information:

• Currency Pair: The two currencies involved in the transaction (e.g., USD/AED, EUR/INR) with clearly indication which is the base currency and which is the quote currency

• Exchange Rate: The rate at which the base currency will be exchanged for the quote currency. This could include, Bid Rate, Ask Rate and Spread (if applicable)

• Transaction Amount: The amount of the base currency to be exchanged or its equivalent in the quote currency.

• Transaction Fees: Any fees or charges applied by the FX house, such as Processing fees and Service fees itemised

• Total Amount Payable/Receivable: The exact amount the customer will pay in AED or another currency and the amount they will receive in the target currency after deducting fees.

• Purpose of Transaction: Purpose of the transaction (e.g., payment for goods, personal remittance, salary payment). Required to ensure compliance with (AML and counter-terrorist financing (CTF) laws in UAE.

• Date and Time of Quote: The timestamp of when the quote was generated.

• Quote Validity Period: The duration for which the quoted exchange rate is valid for.

• Settlement Details: Details of when and how the settlement will take place. Includes:

  • Settlement Date: When the transaction will be completed (e.g., T+2 for spot transactions).

  • Payment Method: How the funds will be paid (e.g., bank transfer, cash, card).

  • Delivery Instructions: The destination account or remittance details for receiving the funds.

• Customer Identification: For compliance with UAE regulations, the FX House must include the customer’s (if applicable):

  • Name

  • Emirates ID (or other official ID for expatriates)

  • Business license (if the customer is a corporate entity)

  • Contact details

• Existing Customer Flag: Flag to indicate whether the quoted user is an existing customer of the FX House or not

• FX House (or LFI) Information including:

  • The full name, address, and license details of the FX House or LFI

  • Statement of compliance with UAE Central Bank regulations.

• Reference Number: A unique transaction or quote reference number for tracking purposes.

• Terms and Conditions including disclosures about:

  • The FX house's liability in case of errors or delays

  • Refund and cancellation policies

  • Any additional legal or compliance information

BNK-FXQI-REQ-8

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to provide in the quote response personalised or preferential exchange rates and remittance fees, for quotes from existing users already having accounts with the FX Houses.

BNK-FXQI-REQ-9

The Open Finance Enhanced FX solution(s) MUST enable FX Houses (and/or LFIs), to respond to the FX & Remittance quote initiation requests by sending with their quotation data in the response messages back to the API Hub.

BNK-FXQI-REQ-10

The Open Finance Enhanced FX solution(s) MUST allow the API Hub to forward the FX & Remittance quotation responses back to the initiating TPPs.

BNK-FXQI-REQ-11

The Open Finance Enhanced FX solution(s) MUST allow TPPs to display all the FX & Remittance quotation information and options to Users including any additional conditions and terms, and advise Users how to proceed in order to take action on the received quotes.

BNK-FXQI-REQ-12

The Open Finance Enhanced FX solution(s) MUST enable TPPs to allow Users to sort or filter the provided quotes based on a number of different preferences such as:

• FX Houses/LFIs with existing accounts

• Total Amount Payable/Receivable

• Alphabetically

• Entity type )FX House or LFI, if applicable)

• Transaction Fees:

• Exchange Rate

• Validity period

The Open Finance Enhanced FX solution(s) MUST allow TPPS to display the quotes in a neutral way as the default, in the cases Users have not selected any preference of sorting and filtering the generated quotes.

BNK-FXQI-REQ-13

The Open Finance Enhanced FX solution(s) MUST allow TPPs to enable Users, who have existing accounts and contractual agreements with the FX Houses selected for their FX quotes, to use a received quote for initiating a service request in response to their quote, as per the requirements defined in https://openfinanceuae.atlassian.net/wiki/spaces/Internal/pages/247627777/Open+Finance+Enhanced+FX+Proposition#5.4-Remittance-Service-Initiation

BNK-FXQI-REQ-14

The Open Finance Enhanced FX solution(s) MUST allow TPPs to enable Users, who do not have existing accounts and contractual agreements with the FX House they selected for their FX quotes, to initiate a dynamic account opening service request and to be redirected to the FX Houses, for completing the account opening, as per the requirements stated in https://openfinanceuae.atlassian.net/wiki/spaces/Internal/pages/247627777/Open+Finance+Enhanced+FX+Proposition#5.3-Account-Opening-Service-Initiation.

BNK-FXQI-REQ-15

The Open Finance Enhanced FX solution(s) MUST NOT allow Users’ FX & Remittance quote data to be stored in the API Hub.

5.3 Account Opening Service Initiation

5.3.1 Process flow

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5.3.2 Requirements (WIP)

ID

Requirement

BNK-FXAC-REQ-1

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to dynamically open accounts and onboard new users in compliance with the Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) laws and also Know Your Customer (KYC) protocols.

BNK-FXAC-REQ-2

The Open Finance Enhanced FX solution(s) MUST enable Users, before the FX account opening, to provide TPPs with the name of one of their existing LFI or FX Houses which can be used to provide User’s Customers personal data required for generating a new FX account open request with their selected FX House.

BNK-FXAC-REQ-2

The Open Finance Enhanced FX solution(s) MUST allow Users to provide their explicit consent to the TPP to receive their user Customer personal data for the purpose of FX account opening from their existing LFI or FX House.

BNK-FXAC-REQ-3

The Open Finance Enhanced FX solution(s) MUST clearly identify that the purpose of the data sharing consent is for new FX account open service request. Moreover, the consent SHOULD include the the FX House that will receive the users' data for FX account opening purposes.

BNK-FXAC-REQ-4

The Open Finance Enhanced FX solution(s) MUST only allow TPPs to use a data sharing consent with the Customer Data related clusters for the purpose of account opening. Moreover, the consent duration for this purpose MUST be short-lived (24 hours period or less)

BNK-FXAC-REQ-5

The Open Finance Enhanced FX solution(s) MUST enable the data sharing process for FX account opening purposes to proceed as per the requirements defined in https://openfinanceuae.atlassian.net/wiki/spaces/Internal/pages/247627777/Open+Finance+Enhanced+FX+Proposition#5.1-Data-sharing-for-FX-%26-Remittances-Services.

BNK-FXAC-REQ-6

The Open Finance Enhanced FX solution(s) MUST allow TPPs to request from the Users to manually provide the Customer data required in the FX account opening data set which have not been provided by the data sharing activity. Additionally, they MUST enable TPPs to allow Users to modify the data, if they think appropriate (e.g. to correct erroneous data provided).

BNK-FXAC-REQ-7

The Open Finance Enhanced FX solution(s) MUST allow TPPs to include in the FX account opening service request, the following additional information about each field of the Users' Customer personal data:

• Which data fields have been manually provided by Users (not included in the data sharing from existing LFI or FX House)

• Which data fields have been manually updated by Users (included in the data sharing from existing LFI or FX House but changed by Users(. In this case, the original value MUST also be included.

BNK-FXAC-REQ-8

The Open Finance Enhanced FX solution(s) MUST allow TPPs to initiate the FX account opening service requests to the selected FX House using the API Hub. TPPs will include in the service requests all the Users' Customer personal data they received using the data sharing functionality, or provided by Users manually. The API HUB will be forwarding the service requests to the FX House together with the users' Customer personal data required for the FX account opening service requests.

BNK-FXAC-REQ-9

The Open Finance Enhanced FX solution(s) MUST allow TPPs to include in their FX account opening service requests, the following information:

Individual Customers (Personal Accounts)

A. Personal Information, including:

• Full Name (as per Emirates ID or Passport), Nationality, Date of Birth

• Residential Address (proof may be required) Contact Details (mobile number and email)

• Employment Details (job title, employer name, or business details if self-employed), Tax Identification Number (TIN) (if applicable)

B. Identification Documents, including:

• Emirates ID (for UAE residents) – both front and back copies, Passport Copy (for non-residents or expatriates), Valid UAE Visa Copy (for expatriates)

C. Proof of Address, including:

• Recent Utility Bill (DEWA, Etisalat, Du, etc.), Tenancy Contract or Ejari Certificate (if requested), Bank Statement (with UAE address, dated within the last 3 months)

D. Financial and Banking Details, including:

• Bank Account Details (for deposits and withdrawals)

BNK-FXAC-REQ-10

The Open Finance Enhanced FX solution(s) MUST allow TPPs as part of the FX account opening service requests to register a callback API endpoint (i.e. webhook). This will be used by the FX House to asynchronously notify the API HUB and the TPP that the new User FX account has been opened with the FX House as per the request. FX House MUST also include the relevant information for the new FX account.

BNK-FXAC-REQ-11

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to receive the FX account opening service requests and use the provided Users' Customer personal data to execute their FX account opening process in near-real-time (and not-real-time in certain scenarios).

BNK-FXAC-REQ-12

The Open Finance Enhanced FX solution(s) MUST enable FX Houses, to respond to the FX account opening service requests by sending with their response messages back to the API Hub. Moreover, the Open Finance Enhanced FX solution(s) MUST allow the API Hub to forward the account opening service request responses back to the initiating TPPs.

BNK-FXAC-REQ-13

The Open Finance Enhanced FX solution(s) MUST enable TPPs to redirect the users to the FX House’s web interface or to the FX House’s app if available (download maybe required first).

BNK-FXAC-REQ-14

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to present to Users a user registration page (for web) or screen (for app) which will contain the Users' Customer personal data received by the TPP as part of the FX account opening service request. Users MUST review and confirm their details are correct.

BNK-FXAC-REQ-15

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to request Users to manually provide any information required for the FX account opening which is missing from the Customer personal data received by the TPP as part of the FX account opening service request. Users MUST review and confirm their details are correct.

BNK-FXAC-REQ-16

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to verify the Users' provided contact details including mobile phone number and email address.

BNK-FXAC-REQ-17

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to request Users to provide electronic copies of their User identity information such as the Emirates ID or passport. This could be achieved by taking photos of an existing paper document or uploading an electronic version of the document.

BNK-FXAC-REQ-18

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to request users to provide biometric details that can be matched against the provided identity documents. The most common biometrics used is facial biometrics using a photo or video for facial recognition and matching against the Emirates ID or passport.

BNK-FXAC-REQ-19

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to request Users to provide the following information:

A. Financial and Banking Details, including:

• Source of Funds (salary, savings, inheritance, business income, etc.)

• Expected Transaction Volume (monthly/annual expected transfers and currency usage)

B. Compliance & Declaration Forms

• Know Your Customer (KYC) Form

• Declaration of Purpose of Transactions

• Consent for AML/CFT Compliance Checks

BNK-FXAC-REQ-20

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to send an FX Account Open Confirmation notification to the API HUB and the originating TPP using the registered callback API endpoint (i.e. webhook).

BNK-FXAC-REQ-21

The Open Finance Enhanced FX solution(s) MUST enable FX Houses to include in the FX Account Open Confirmation, the following information:

• FX Account identification details (e.g. account number/ID or IBAN)

• Account Features & Services, including:

  • Currency Pairs Available: List of supported currencies for exchange.

  • Transaction Methods: Bank transfers, cash transactions, online trading, etc.

  • FX Products: Spot exchange, forwards, options, remittances, etc.

  • Multi-Currency Support: If the account can hold multiple currencies.

BNK-FXAC-REQ-22

The Open Finance Enhanced FX solution(s) MUST enable Users to get confirmation of their new FX account open by both the originating TPP and the account holding FX House. The FX House MUST use the Users verify contact details to inform them about the credentials of accessing the account.

5.4 FX & Remittance Service Initiation

5.4.1 Process flow

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5.4.2 Requirements

ID

Requirement

BNK-FXSI-REQ-1

The Open Finance Enhanced FX solution(s) MUST enable TPPs to initiate a “funding” payment from an existing LFI or FX House account to an account with the selected FX House for the FX & Remittance services based on a received quote. This may be either using a SIP as per https://openfinanceuae.atlassian.net/wiki/spaces/standardsv1dot2final/pages/277939953/Single+Instant+Payments or using a long-lived consent as per https://openfinanceuae.atlassian.net/wiki/spaces/standardsv1dot2final/pages/277940444/Multi-Payments. The destination account in this payment will be the User’s account in the FX House (and/or LFI) selected based on the quote.

BNK-FXSI-REQ-2

The Open Finance Enhanced FX solution(s) MUST allow TPPs to acquire User’s explicit consent for the initiation of the FX & Remittance services with the FX House (and/or LFI) selected based on the quote. TPPs MUST display the full details of the FX & Remittance services details, as defined in the quote, before asking for explicit consent. The quote validity period must be clearly highlighted to the User. The consent MUST include the unique quote id (i.e reference number).

BNK-FXSI-REQ-3

1. Description

This Dynamic Account Opening service enables TPPs to initiate Account Opening Service Requests to a number of LFIs, providing them with necessary Users' data required for initiating account their opening and onboarding process for new Users. In the context of the Open Finance FX & Remittance Services, this refers to Users who received and selected a quote from a specific LFI for their FX & Remittance requirements and they do not have an existing account with the LFI. This service enables Users to respond to the FX Services quote by selecting to open a new account with the LFI in order to proceed with actioning the quote. However, please note that the Account Opening service initiation does not need to be of an FX Services quote, but can be offered to Users by TPPs as a standalone service.

As part of the account opening service request, Users may provide TPPs with their consent to access their existing account(s) with other LFIs, in order to acquire the Users personal data, that can be used to populate the account opening service requests to be sent to the LFIs. The Users' consent to TPPs for Data Sharing requests of existing personal data for the purpose of account opening MUST be a short-lived consent (i.e. lasting for 24 hours max). During this period, TPPs will be making a number of Data Sharing requests to acquire all the personal data necessary for the account opening initiation.

For the Account Opening service initiation Users do not need to provide explicit consent to TPPs for initiating the process with LFIs.

The above functionality will enable the participation of Exchange Houses in the Open Finance program and promote a more competitive market environment where Users can benefit from the best FX services deals available.

The Account Opening service initiation will be based on the dataset available from the Data Sharing functionality and may be subject to additional asynchronous processes by each participarting LFI.

1.1 Customer Segments Scope

The scope of the IP Payments bank service initiation related to the segments of Debtors and Creditors is shown below:

1.2 Example User Story - Dynamic Account Opening with LFIs

1.3.Process flow

The below diagram depicts the high level process flow for the dynamic account opening and onboarding service:

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2. User Journey

2.1 Account Opening Basic Journey

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2.2 Share Personal Data (Conditional)

As defined in https://openfinanceuae.atlassian.net/wiki/spaces/standardsv2draft2/pages/304550037/Customer+Data#2.-User-Journey

3. Customer Experience

3.1 Step 1 - Acquire User Data

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3.2 Step 2 - Account Opening

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3.1 Rules & Guidelines

8. Considerations

8.1 Constraints

1. FX Houses must only allow data sharing or FX & Remittance services initiation after authenticating Users using multi-factor authentication (MFA), as the Strong Customer Authentication Guidelines.

2. The API Hub does not have the capability of broadcasting a single API message to multiple recipients. Therefore, TPPs must generate multiple FX & Remittance quote API requests, one for each FX House (or LFI) that is required to generate a quote based on the Users' preferences. The quote request API messages sent to each FX House (or LFI) will be the same for all insurrer FX Houses (or LFIs).

3. FX houses are regulated by the Central Bank of the UAE (CBUAE), which defines their scope of operations. Their licenses typically do not permit trading in speculative or derivative financial products like futures contracts. Futures contracts fall under the jurisdiction of the Securities and Commodities Authority (SCA), which oversees brokers and financial institutions that provide derivative trading. FX Houses are designed to provide straightforward, practical financial services, such as currency exchange and remittances. Offering futures contracts requires specialized infrastructure, trading platforms, and expertise, which are outside their operational focus. The typical customers of FX Houses, consumers and SMEs, are more likely to need currency conversion or cross-border payments rather than complex trading instruments.

8.2 Dependencies

1. The FX Houses are able to provide real-time quotations of FX & Remittance services based a specific data provided to them by TPPs.

2. The FX Houses are able to lock a specific FX conversion rate as part of the quote, for a period of time long enough to allow TPPs to initiate the FX & Remittance services based on the values defined in the quote.

3. The connectivity between TPPs and FX Houses, for the Open Finance Enhanced FX functionality in scope will be taking place via the API Hub.

4. The ability for fast online account opening and onboarding of new users by FX Houses, partially depends on the quality of the data provided by the User and/or their existing FX House or LFI.

5. The FX Houses are able to support digital online account opening and onboarding based on the data provided to the them by TPPs and/or the Users in automated process and within certain timelines that may need to be defined by the Open Finance Standard.

8.3 Assumptions

1. It is expected that FX Houses will be able to provide the same data as LFIs for the Customer data and Transactions permissions as currently implemented by LFIs.

2. For data sharing functionality, FX Houses are subject to the same data retention period as required by LFIs.

3. For data sharing functionality, the maximum consent validity period will be 12 months in alignment with the Banking LFIs.

4. For quotation functionality, it is assumed that all FX Houses will require the same data set for providing an FX & Remittance quote, subject to the service requested.

5. For data opening functionality, it is assumed that all FX Houses will require the same data set for proceeding with the the dynamic account opening and onboarding. This set will be the superset of all the data requirements identified in the FX Houses market.

6. The API Hub will not be storing any users' Customer personal data or users' quotation data, instead data will only be transferred by the sharing insurer FX Houses (or LFIs) to the TPPs.

7. The FX Houses will be able to use the Centralized Authentication and Authorization process offered by the Open Finance Platform, as defined in Centralized Authentication and Authorization.

8. The FX Houses will be responding with quotes to all requests for FX & Remittance quotes, subject to supporting the services in their own channels (e.g. specific currency pairs or inability to perform certain money transfers).

9. Appendix

9.1 Functionality

The scope of the FX & Remittance Quote Initiation service from the functionality perspective is shown below:

FX & Remittance Quote Functionality (Initial Scope)

#

Functionality

Description

In Scope (Y/N)

Create FX & Remittance Quote

• The capability of TPPs to send FX & Remittance Quote Initiation request to multiple FX Houses (or LFIs).

• The capability of FX Houses (or LFIs) to receive FX & Remittance Quote Requests and provide their response of actionable quotes to TPPs.

Request User’s FX & Remittance Product Data from FX Houses and/or LFIs

• The capability of TPPs to send Users' FX & Remittance Product Data Sharing requests to one (or more) FX Houses and/or LFIs subject to acquiring Users' explicit consent.

• The capability of FX Houses and/or LFIs to receive Data Sharing requests and respond with the User’s FX & Remittance Product Data back to TPPs.

Retrieve FX & Remittance Quote

• The capability of TPPs to use a FX & Remittance Quote Retrieve request based on an unique ID to retrieve all the relevant information of a valid quote from an FX House (or LFI).

• The capability of FX Houses (or LFIs) to receive a FX & Remittance Quote Retrieve request and respond back to TPPs with the details of the valid FX & Remittance Quote.

Not required. TPPs can store the FX & Remittance Quotes as their validity period is usually short.

Remove/delete FX & Remittance Quote

• The capability of TPPs to send a Delete FX & Remittance Quote request to FX Houses (or LFIs) to delete a previously provided FX & Remittance Quote based on Users' request or automatically after Users' selection to action FX & Remittance Quotes from other FX Houses (or LFIs).

• The capability of FX Houses (or LFIs) to receive Delete FX & Remittance Quote requests and invalidate/delete a previously provided FX & Remittance Quote.

Not required. FX Houses (or LFIs) can delete the quotes when they expire as their validity period is usually short.

Update FX & Remittance Quote

• The capability of TPPs to allow Users to change some of their FX & Remittance requirements so that a previously received FX & Remittance Quote can be updated by submitting a FX & Remittance Quote Update request to FX Houses (or LFIs).

• The capability of FX Houses (or LFIs).to receive FX & Remittance Quote Update requests and provide an updated quote that replaces a previous Quote and send its details back to the TPPs.

Not required. FX Houses (or LFIs) can generate new quotes if required.

Approve/Reject FX & Remittance Quote

• The capability of TPPs to allow Users to Approve a FX & Remittance Quote or Reject it. In the case of approval, this refers to the capability of actioning the FX & Remittance Quote and initiating the FX & Remittance service with the selected FX House (or LFI) for the approved Quote.

• The capability of FX Houses (or LFIs) to receive FX & Remittance service initiation requests from TPPs for the selected quote and proceed with the quoted FX & Remittance services.

Account+Opening#4.1-Account-Opening-Service-Initiation-Data. 6.4 Be able, as part of the Account Opening service initiation requests, to register a callback API endpoint (i.e. webhook). This will be used by the LFI to asynchronously notify the OFP and the TPP that the new user account has been opened with the LFI as per the service initiation request.
		OFP MUST: 6.5 Allow the TPPs to submit each individual Account Opening service initiation request without any additional MFA or authorization from the User. 6.6 Forward the Account Opening service initiation request to the selected LFI together with the users' customer personal data required for the new account opening process. 6.7 NOT store any Users' customer personal data included in the Account Opening service initiation requests. The data will only be transferred by the TPPs to the LFIs.
BNK-AC-REQ-7	Account Opening Staging	LFIs MUST: 7.1 Be able to receive the Account Opening service initiation requests and use the provided Users' customer personal data to initiate their account opening process in near-real-time (and not-real-time in certain scenarios). 7.2 Respond to the Account Opening service initiation requests by sending their response messages back to the OFP. 7.3 Include in the Account Opening service initiation responses the redirection information that TPP MUST use for redirecting Users to the LFIs.
		OFP MUST 7.4 Forward the Account Opening service initiation responses back to the initiating TPPs.
BNK-AC-REQ-8	Hand-off to LFI	TPPs MUST: 8.1 Provide messaging to inform Users that they will be redirected to the LFIs to complete the account opening process. 8.1.1 Example wording to use: ‘We will securely transfer to YOUR LFI to authorize and make the payment“. 8.2 Redirect the Users to the LFIs' web interface or the LFIs' app if available (download maybe required first) in order to continue with the he account opening process.
		LFIs MUST: 8.3 NOT present any additional inbound redirection screens. 8.4 Request the details included in the staged Account Opening resource from the OFP
		OFP MUST: 8.5 Provide the Account Opening details to the LFIs based on the unique Account Opening resource identifier.
		LFIs MUST: 8.6 Initiate the Account Opening and Onboarding process.
BNK-AC-REQ-9	Account Opening process	LFIs MUST: 9.1 Present to Users a user registration page (for web) or screen (for app) which will contain the Users' customer personal data received by the TPP as part of the Account Opening service initiation request. 9.2 Request Users to review and confirm their details are correct. 9.2.1 Allow Users to modify the data, if they think appropriate (e.g. to correct erroneous data provided). 9.2.2 Request Users to manually provide any information required for the Account Opening process which is missing from the customer personal data received by the TPP as part of the Account Opening service initiation request. Users MUST review and confirm their details are correct. 9.3 Verify the Users' provided contact details including mobile phone number and email address. 9.4 Request Users to provide electronic copies of their User identity information such as the Emirates ID or passport. This may be by taking photos of an existing paper document or uploading an electronic version of the document. This may be required if these have not already been included in the data provided by the Account Opening service initiation request. 9.5 Request users to provide biometric details that can be matched against the provided identity documents. The most common biometrics used is facial biometrics using a photo or video for facial recognition and matching against the Emirates ID or passport. 9.6 Request Users to provide the following additional information: 9.6.1 Financial and Banking Details, including: Source of Funds (salary, savings, inheritance, business income, etc.) Expected Transaction Volume (monthly/annual expected transfers and currency usage) 9.6.2 Compliance & Declaration Forms Know Your Customer (KYC) Form Declaration of Purpose of Transactions Consent for AML/CFT Compliance Checks 9.7 Request Users to Accept T&Cs and provide their final confirmation for the Opening of the Account. 9.8 Advise Users about the timelines for the completion of the Account Opening process.
BNK-AC-REQ-10	Hand-off back to the TPP	LFIs MUST: 10.1 Confirm to the OFP that the interaction session is now completed.
		OFP MUST: 10.2 Initiate the User Redirection process by providing all necessary information to the LFI.
		LFIs MUST: 10.3 Provide messaging to inform Users that they will be taken back to their TPP. 10.4 4 Redirect Users to the TPP immediately after receiving the required information from the OFP.
BNK-AC-REQ-11	Account Opening Status Update	LFIs MUST: 11.1 Set the status of the New Account resource to “Opened” 11.2 Send an Account Open Confirmation notification to the OFP using the registered callback API endpoint (i.e. webhook). .11.3 Include in the Account Open Confirmation notifications the information as per https://openfinanceuae.atlassian.net/wiki/spaces/standardsv2draft2/pages/309788673/Dynamic+Account+Opening#4.2-Account-Open-Confirmation-Data.
		OFP MUST: 11.3 Forward the Account Open Confirmation notifications to the TPP including all the information provided by the LFIs. 11.4 NOT storing any Users' Account Open confirmation data included in the Open Confirmation notifications. Data will only be transferred by the OFP to the TPPs.
BNK-AC-REQ-12	Confirmation to User	TPPs MUST: 12.1 Confirm to Users the outcome of their Account Opening service initiation request with the LFI. 12.2 Confirm to Users using confirmation screens in line with the customer journey, for every Account Opening service initiation that Users are present.
BNK-AC-REQ-13	User Notifications	TPPs MUST: 13.1 Send a notification about the outcome of the Account Opening service initiation request to Users, if they are not present at the TPP app. LFIs MUST: 13.2 Send a notification to Users on the success or failure of the Account Opening service initiation request. 13.3 Use SMS as a minimum channel to notify Users and optionally any other allowable channels (e.g. email, app notifications) currently used for account opening related notifications to their customers depending on UAE rules and regulations, for all Open Finance related notifications to Users. 13.4 Use the Users' verified contact details to inform them about the credentials of accessing the new account account. 13.5 Identify in the notifications the TPP initiating the the Account Opening service request.

3.2 Journey Variations

TBC

4. Dynamic Account Opening Common Rules & Guidelines

4.1 Account Opening Service Initiation Data

4.2 Account Open Confirmation Data

5. Account Open Lifecycle States