The Central Bank of the United Arab Emirates revoked the license of the Dirham Exchange Company operating in the country, and its name was removed from the register, and the registration of the “RMB Commercial Brokerage” company, the hawala company operating in the country, was removed from the register, in accordance with the provisions of Article 137 of the Federal Decree Law. No. (14) of 2018 regarding the Central Bank and the regulation of financial facilities and activities, and Article (14) of Federal Decree-Law No. (20) of 2018 regarding countering money laundering and combating the financing of terrorism and financing illegal organizations.
The administrative penalties come as a result of the Central Bank’s inspection, which revealed organizational misconduct, including misconduct with regard to countering money laundering and evading the Central Bank’s instructions by the exchange company not to engage in remittance transactions with certain countries.
The results also revealed that the compliance framework of the exchange and hawala companies is weak, in addition to their failure to comply with their regulatory obligations and to report regulatory violations to the Central Bank.
The UAE Central Bank, through its oversight and supervisory functions, ensures that all exchange and hawala companies, their owners and employees comply with the laws in force in the country and the regulations and standards approved by the Central Bank, with the aim of preserving the transparency and integrity of the country’s financial system.
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