UAE Central Bank Shuts Down Major Money Exchange House Over ‘Serious Misconduct’
The Central Bank of the UAE (CBUAE) has revoked the license of the Dirham Exchange, removing its name from the register, as per a statement. CBUAE took decisive actions against two financial entities operating within the country, as part of its commitment to upholding regulatory integrity and combatting financial misconduct.
Moreover, the registration of RMB Commercial Brokers Co, a prominent Hawaladar functioning in the nation, has also been revoked. These administrative sanctions are part of an appeals process that adheres to the legal provisions set out in Article 137 of the Decretal Federal Law No. (14) of 2018 pertaining to the Central Bank and the Organisation of Financial Institutions and Activities.
In addition, they are in accordance with Article 14 of the Federal Decree Law No. (20) of 2018, which specifically addresses the prevention of money laundering, financing of terrorism, and financing of illegal organisations. The basis for these measures lies in the detailed examinations carried out by the CBUAE, revealing grave instances of regulatory misconduct.
These include a range of infractions, including anti-money laundering (AML) violations and complicity in bypassing the CBUAE’s explicit instructions for the exchange house to refrain from engaging in remittance transactions with certain designated countries.
“The findings showed that they had a weak compliance framework and failed to comply with their regulatory obligations and to report regulatory breaches to the CBUAE,” the Central Bank said in the statement.
The findings underscore a lacklustre compliance framework, highlighting the entities’ failure to fulfil their regulatory commitments and to promptly report any regulatory transgressions to the CBUAE.
