In a pioneering move to enhance consumer trust in the financial and insurance sectors of the United Arab Emirates, the Central Bank of the UAE officially announced the establishment of an independent dispute resolution unit named SANDC on March 7, 2024. This initiative is grounded in Federal Decree-Law No. 14 of 2018 concerning the Central Bank and the regulation of financial institutions and activities, along with its amendments.
SANDC is the first specialized dispute resolution body of its kind in the Middle East and North Africa (MENA) region, offering transparent, fair, and efficient mechanisms for handling complaints and resolving financial disputes outside the traditional court system.
Legal Basis for Establishing SANDC
The Central Bank relied on its legislative powers under Federal Decree-Law No. 14 of 2018 to establish SANDC. The unit aims to:
- Increase transparency and protect consumer rights.
- Improve the efficiency of dispute handling mechanisms.
- Reduce the burden on the judiciary.
Scope of SANDC’s Authority
SANDC is tasked with the following:
- Receiving and resolving complaints against:
- Licensed financial institutions regulated by the Central Bank.
- Licensed insurance companies operating within the UAE.
- Mediating disputes involving banking services such as accounts, loans, credit cards, financing, and insurance.
- Issuing legal solutions and fair settlements that protect consumer rights and uphold the financial system.
- Issuing binding decisions in specific situations as per Central Bank regulations.
How SANDC Differs from Traditional Courts
- Faster resolution compared to court litigation.
- No obligation to appoint a lawyer.
- Low or zero filing fees.
- Ability to file and track complaints online.
- Legally structured decisions issued within a defined timeframe.
SANDC Headquarters
Emirates Institute of Finance Building – Ground Floor
Sultan Bin Zayed the First Street – Abu Dhabi
Phone: 800 SANDC (800 72632 5)
SANDC operates independently of the Central Bank’s executive departments to ensure impartiality and credibility in decision-making.
When Can You File a Complaint with SANDC?
You can escalate your complaint to SANDC if:
- You have submitted a complaint to the financial institution or insurance company, and it has not been resolved within 30 business days.
- The issue involves a product or service under the Central Bank’s jurisdiction.
Q&A
- Are SANDC’s decisions binding?
Yes, in some cases, decisions issued by SANDC are binding. They may be appealed before competent courts within the statutory timeframe. - Does SANDC replace the judicial system?
No, SANDC provides an alternative route for dispute resolution. However, consumers still retain the right to file a case in court if they are unsatisfied with the outcome. - Are corporate clients eligible to file complaints with SANDC?
Primarily, SANDC handles individual consumer complaints. However, small and medium enterprises may also be included depending on regulatory criteria.
Our Legal Services in Financial Disputes
At Alya Salem Al Nuaimi Law Firm, we offer expert legal support for individuals and businesses facing banking or insurance-related disputes. Our team is well-equipped to:
- File legal complaints with SANDC.
- Review and challenge SANDC’s decisions.
- Represent clients in court if escalation is required.
- Provide proactive legal advice on financial contracts and consumer rights.
Reach out to our legal team today for trusted support in navigating financial and banking disputes in the UAE.
