Banking Resolution Template for the United Arab Emirates

A Banking Resolution is a formal corporate document that authorizes your company to establish and maintain banking relationships in the United Arab Emirates. This critical governance document serves as the legal foundation for all banking operations, designating authorized personnel and specifying the scope of permitted banking activities under UAE law.

When do you need this document?

You need a Banking Resolution when opening new corporate bank accounts, adding or removing authorized signatories, or modifying existing banking services. Financial institutions in the UAE require this document to verify your company's authority to conduct banking operations and to identify individuals authorized to act on behalf of your organization. The resolution is also necessary when establishing credit facilities, setting up online banking services, or implementing new payment systems. Additionally, banks may request updated resolutions during annual reviews or when significant changes occur in your company's management structure.

Key legal considerations

The Banking Resolution must comply with UAE Federal Law No. 14 of 2018 (Central Bank Law) and the UAE Commercial Companies Law No. 2 of 2015. Key provisions should include detailed authorization of banking activities, clear identification of authorized signatories with their specimen signatures, and specific limits on transaction authorities. The document must address anti-money laundering compliance requirements under UAE Federal Decree Law No. 20 of 2018, including customer due diligence obligations. Consider including provisions for electronic transactions in accordance with UAE Federal Law No. 1 of 2006, as many banking operations now require digital authorization capabilities.

Legal requirements in United Arab Emirates

Under UAE law, Banking Resolutions must be properly adopted through your company's board of directors or shareholders, depending on your corporate structure and articles of association. The resolution requires attestation by your company secretary and must include the company's legal name, registration number, and registered address as recorded with the UAE Ministry of Economy or relevant free zone authority. Central Bank Circular No. 8/2020 mandates specific disclosures for large exposures and related party transactions. The document must be notarized and may require additional authentication depending on your bank's requirements and the nature of banking services requested. Ensure the resolution addresses UAE Central Bank regulations regarding corporate governance and risk management, particularly if your company engages in significant financial transactions or operates in regulated sectors.