The Ministry of Finance (MoF), has announced the launch of a digital system for the collection of revenue and public funds. This is in line with the Ministry’s efforts to adopt digital solutions and to develop processes to collect national debt in accordance with international best practices, said a MoF statement issued on Thursday.

The system is based on the provisions of Federal Decree No.15 of 2018 on the collection of revenues and public fund, and Ministerial Resolution to establish a relevant organisational unit.

Younis Haji Al Khoori, Undersecretary of MoF, pointed out that the launch of the system is a step towards automating government financial work in accordance with the highest global standards. The system lays out the framework that guarantees the rights of government entities and supports the federal revenue management governance in accordance with the procedures and laws of the federal government, he noted.

“The Ministry of Finance strives to use digital solutions that raise business efficiency and reduce potential human errors. The aim is to improve the collection of government revenue in line with the UAE Vision 2021. It also adheres to the highest standards of governance as we employ these digital solutions at the federal level,” Al Khoori explained.

The collection of revenue and public funds system is automated, and provides innovative processes to count and collect national debts, as stipulated in Article No.3 of the provisions of Federal Decree Law No.15 of 2018. The latter clarifies the details of revenue and public funds in accordance with the provisions of the decree, and includes: taxes, fees and royalties imposed by a federal law within the jurisdiction of the state in legislation and implementation.

Furthermore, it includes the fees and wages that the state collects for the services it provides, administrative fines, compensation awarded, the returns of the nation’s investments and the sum due in return for the sale, lease or ownership of public funds, or the use thereof.

In the new system, the designated MoF team will manage the creditor bodies’ files submitted through the system, check the files and ensure that all relevant documents are in order. In the event that the debtor’s file is transferred to the courts via the electronic debt system, collection by the courts via the bank account will be made exclusively through bank transfers. As for the settlement within the organisational unit, it will be done electronically, as part of the ministry’s commitment to fully automate procedures to reach 100 per cent digitisation, said the statement.

MoF announced the completion of phase one of the transformation of the e-Dirham system, in cooperation with relevant ministries and national banks across the UAE. The move reiterates MoF’s efforts to bolster e-Dirham in accordance with the highest international standards for Fintech and digital payments for government services fees. The e-Dirham system provides multiple banking services to issue bank cards and digital payment and acquisition solutions for clearing and financial settlements. The first phase of the transformation of the e-Dirham system included the Ministry of Economy, the Ministry of Energy and Industry, and several national banks. Expansion is underway to include additional federal government entities and national banks.

Younis Haji Al Khoori reiterated the importance of completing the first phase of the e-Dirham system, as well as its role in strengthening the partnership between the public and private sectors, through cooperation with national banks. The new payment method ensures financial flow for federal government service fees and financial settlements are flexible and sustainable, in accordance with the UAE Vision 2021.

As part of its efforts to implement the cabinet decision on the rules to open and close bank accounts and broader banking operations, as well as to ensure optimal application by the relevant authorities in the UAE, the Ministry of Finance recently organised a virtual workshop with the UAE Central Bank, and banks within the country, on June 21 and 22. The workshop, which was attended by several financial managers from 30 ministries and federal government entities in the UAE, elucidated banking procedures related to managing bank accounts for federal entities. These include operations related to the powers and limitations of signature and other procedures regulating banking procedures, in line with the Federal Decree-Law on Public Finance.  Mariam Al Amiri, Undersecretary Financial Management Sector, noted that the workshop aims to introduce important terms of the cabinet decision around the rules for opening and closing bank accounts and banking operations and the optimal manner to address issues.

WAM