UAE Central Bank Shuts Down Major Money Exchange Company, Revokes Licence

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Picture for illustrative purposes only. ARCHIVE

UAE Central Bank shuts down money exchange company

The Central Bank of the UAE has shut down Dirham Exchange and revoked its licence over “serious misconduct”.

The authority also revoked the registration of RMB Commercial Brokers Co., a hawala operator. Hawala is an informal method of money transfer that has been regulated by the Central Bank since 2019.

The administrative sanctions against Dirham Exchange and RMB Commercial Brokers Co. come after investigations by the Central Bank revealed they committed serious regulatory misconduct against the UAE’s Anti-Money Laundering Law.

“The result of the examinations conducted by the CBUAE [reveal] serious regulatory misconduct, including AML misconduct and collusion in evading CBUAE’s instructions to the exchange house not to engage in remittance transactions with certain countries,” according to state news agency WAM.

The investigations also showed that the companies had a weak compliance framework and failed to comply with their regulatory obligations and to report regulatory breaches to the Central Bank of the UAE. ICA/Expat Media


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