---
title: "What is Unauthorised transaction (open finance)? | IslamicOpenFinance™"
description: "A transaction that the user did not consent to, whether it was executed or only initiated."
url: https://islamicopenfinance.com/glossary/unauthorised-transaction/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Open finance and APIs](https://islamicopenfinance.com/glossary/#open-finance)

Open finance and APIs

# Unauthorised transaction (open finance)

A transaction that the user did not consent to, whether it was executed or only initiated.

An unauthorised transaction is one that the user has not consented to, whether it was executed or only initiated. The Central Bank of the UAE's Open Finance Regulation defines it in these terms, which makes the consent record the deciding evidence when a customer disputes an instruction sent through a service initiation provider. For an Islamic product, an unauthorised instruction is also a contract question, because a sale or investment entered into without the customer's valid consent may not bind the customer at all.

## Sources

- [Central Bank of the UAE Rulebook, Open Finance Regulation: Article 1 definitions, Unauthorized Transaction](https://rulebook.centralbank.ae/en/rulebook/open-finance-regulation)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Consent (open finance)** The customer's explicit, informed permission for a provider to access specified data or initiate a transaction.](https://islamicopenfinance.com/glossary/consent/) [**Service initiation** An open finance service in which a licensed provider initiates a transaction on a customer's account or product, with consent.](https://islamicopenfinance.com/glossary/service-initiation/) [**Consent withdrawal (open finance)** A user's right to withdraw open finance consent at any time, which providers must explain when consent is given.](https://islamicopenfinance.com/glossary/consent-withdrawal/) [**Fuduli (uncommissioned agent)** A person who deals in another's property without authority; the owner may approve or reject the act.](https://islamicopenfinance.com/glossary/fuduli/) [**Strong customer authentication** Verifying a customer with at least two independent factors, such as something they know, have or are.](https://islamicopenfinance.com/glossary/strong-customer-authentication/)

**Open finance and APIs**

1. [Open finance](https://islamicopenfinance.com/glossary/open-finance/)
2. [Application programming interface (API)](https://islamicopenfinance.com/glossary/api/)
3. [Consent (open finance)](https://islamicopenfinance.com/glossary/consent/)
4. [Data sharing (open finance)](https://islamicopenfinance.com/glossary/data-sharing/)
5. [Service initiation](https://islamicopenfinance.com/glossary/service-initiation/)
6. [Data holder](https://islamicopenfinance.com/glossary/data-holder/)
7. [Open finance provider](https://islamicopenfinance.com/glossary/open-finance-provider/)
8. [API hub](https://islamicopenfinance.com/glossary/api-hub/)

[All 221 terms](https://islamicopenfinance.com/glossary/)