UAE residents facing visa cancellation can breathe a sigh of relief regarding their banking needs. Legal experts have clarified that the cancellation of a residency visa does not automatically freeze or close a resident’s bank account, as long as the account remains active and the customer maintains regular communication with the bank.
Ashish Mehta, founder and Managing Partner at Ashish Mehta & Associates, explained that under UAE regulations, a customer’s bank account continues to operate unless it meets specific conditions for being classified as dormant, as defined by the UAE Central Bank.
“None of the opened accounts can be considered ‘dormant’ if the customer’s address is known or if the customer is present and maintains other active accounts with the bank,”
Mehta stated, referencing Article 9(d) of the UAE Central Bank Regulation No. 29/2011.
Clear Guidelines on Dormancy
Accounts are only classified as dormant if there has been no financial or non-financial activity for three years and no communication from the account holder, according to the UAE Central Bank Circular No. 1/2020 on Dormant Accounts.
Key criteria for dormancy include:
- No deposits, withdrawals, or service requests for three years.
- No written or electronic communication from the customer.
- Activity only involving automatic system entries, such as interest or charges, does not count.
As long as a resident continues to use the account or maintain contact with their bank, the account will not be treated as dormant even after their residency visa is cancelled.
Change in Account Status
While immediate closure or freezing does not occur, banks may reclassify accounts of individuals who lose their UAE residency status as “non-resident accounts.” This reclassification could lead to different terms, conditions, or compliance requirements but does not interrupt day-to-day account operations.Legal experts advise residents undergoing visa changes to proactively inform their banks about their updated status to ensure uninterrupted services and to comply with any additional documentation requirements.As the UAE continues to attract global talent and businesses, understanding regulations governing financial matters is crucial for residents navigating career transitions. Authorities urge all account holders to stay informed about Central Bank regulations and maintain clear communication with their financial institutions during any status changes.
For ongoing updates and detailed legal advice, residents are encouraged to consult professional legal services and follow official banking guidelines.
