These action points form part of the strategic goal of maintaining integrity of and confidence in the financial system, which was recently disclosed by the QCB governor Sheikh Abdulla bin Saoud al-Thani.
Highlighting the core objective of strengthening financial stability, the second strategic plan (SSP) for the financial sector said one of the action points is to establish a depositor protection framework in the form of deposit insurance scheme and create a fund for protection of investors.
The SSP, which has been prepared by QCB with the combined effort of Qatar Financial Market Authority and Qatar Financial Center Regulatory Authority, stressed on the need to develop the mechanism for the implementation of the financial stability and risk control committee recommendations and also develop and enhance the early warning system by using advanced techniques.
On the need to ensure consumer and investor protection, the report suggested developing consistent policies and procedures as well as harmonised consumer/investor dispute resolution mechanism for the financial sector. It also recommended establishing a compulsory arbitration mechanism.
On another core objective of strengthening the cyber-security capabilities within the financial sector, the SSP said it was imperative to develop a cyber-security lab, including a comprehensive database of recent threats and challenges for analyses and suggests appropriate response to incipient threats.
The SSP stressed on the need for implementing the financial sector information security strategy and enhance regulations applicable to banks and other financial sector institutions.
About improving consistency, integrity and confidentiality of data reporting and supervisory analytics; the report suggested creating a centralized repository of live information of vehicle related insurance, including current policies, history and claims to enable pricing as well as deter financial crime by supporting the National Anti-money Laundering and Terrorism Financing Committee strategy on AML/CFT to deliver a best in class framework.
“The confidence for participants in the financial system can be fostered when integrity is assured, levels of transparency are high, standards of disclosure and AML/CFT rules are rigorous, enforcement of laws and regulations are prompt and the cyber defense mechanisms stringent enough to thwart untoward challenges,” SSP said.
QCB stressed that Qatar is committed to combating illicit financing and ensuring that financial sector information and infrastructure is protected and safeguarded from cyber incidents.
On promoting market efficiency, transparency and governance; SSP suggested publication of sanctions and penalties in order to crate general preventive effects in the financial sector.
There was a need not only to ensure the availability of high quality and comprehensive data and information to customers and investors but also strengthen and improve the credit information network as well as undertake sector-wide thematic review of financial institutions’ governance arrangements.
Qatar Central Bank (QCB) is seeking to establish a deposit protection framework as well as develop a cyber-security lab as part of efforts to ensure sound and resilient financial sector.
