Picture for illustrative purposes only. ARCHIVE

The Central Bank of the UAE has prohibited all financial institutions from using WhatsApp and other instant messaging platforms for customer service, citing rising risks of fraud and data security breaches. The directive, which took effect on May 1, applies to banks, exchange houses, insurance companies, and payment service providers operating in the UAE. Under the new rules, institutions are no longer allowed to use messaging apps for sharing customer data, confirming transactions, sending one-time passwords (OTPs), or exchanging financial documents. The Central Bank said the move is aimed at protecting customers amid increasing cases of impersonation scams and cybersecurity threats linked to unofficial communication channels. Authorities also raised concerns over data residency, noting that customer information shared through apps like WhatsApp may be stored on servers outside the UAE. Financial institutions were instructed to immediately shut down any existing services conducted via instant messaging platforms and shift to approved channels such as official mobile banking applications, call centres, and physical branches. Regulatory action is expected against those that fail to meet the requirements. ICA/Expat Media
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