Banks stop transferring money through applications registered outside the country

Banks operating in the country have stopped financial transfers through a number of applications of “fintech” companies registered outside the country, which are done by linking these applications to the customer’s bank account in those banks.

According to employees at the customer service centers affiliated with these banks, the customer can no longer withdraw amounts from his bank account directly for these applications, even if they are linked to it, and enter all the details such as the IBAN number, the bank account number, or the direct debit card number and its triple number.

They explained to “Emirates Today” that the customer receives a message stating that the transfer to these applications has been stopped, indicating that he can review the customer service center, or visit the branch for more information.

According to the employees of the customer service centers in these banks, the bank administrations have prevented, from the beginning of this year until now, allowing the use of bank accounts for financial transfers to these applications in succession, after receiving a number of complaints related to the delay in receiving the transferred funds, or their return and incompleteness.

For his part, banking expert, Ahmed Youssef, said, “Banks take measures based on the directives of the Central Bank, in the event of complaints or specific problems related to financial applications or fintech companies in general, especially if they are registered outside the country.”

He added, “The presence of a headquarters for such companies within the country, and their obtaining a license from the Central Bank, as the responsible regulatory body, to operate in the local market, guarantee the rights of customers, and give them the ability to file a complaint if they encounter any problems.

In contrast, if companies are registered outside the country and are not licensed, there are no guarantees to protect the customer’s money.”

Youssef noted that telecommunications companies operating in the country have such services, in addition to exchange companies and a number of licensed financial companies (fintech), and they can be dealt with very easily, with reduced fees and the availability of all guarantees.

He pointed out that financial and regulatory laws and procedures change according to people’s needs and to guarantee their rights, and if these banks allow customers to link their bank accounts to these companies and applications from outside the country at some point, then the practices on the ground may arise problems, making the ban primarily in the interest of the customer.