In response to major infractions of the regulatory regulations, the Central Bank of the UAE (CBUAE) said on Wednesday that it had revoked the license and removed Dirham Exchange, a money exchange firm operating in the UAE, from the Register.
The country’s operating company, RMB Commercial Brokers Co, had its registration cancelled, according to the regulatory body.
According to Article 137 of the Decretal Federal Law No. (14) of 2018 regarding the Central Bank & Organization of Financial Institutions and Activities and Article 14 of the Federal Decree Law No. (20) of 2018 on Combating Money Laundering (AML) Crimes, the Financing of Terrorism, and the Financing of Illegal Organizations, the Central Bank further stated that the administrative sanctions were followed by an appeals procedure.
The administrative fines were issued after the Central Bank discovered major regulatory violations, including collaboration to evade the Central Bank’s orders to the exchange house not to conduct remittance transactions with specific nations and anti-money laundering violations.
“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 stated.
To protect the openness and integrity of the UAE financial system, the Central Bank said it makes sure that all exchange houses, their owners, employees, and Hawaladars adhere to UAE laws, regulations, and standards.
After looking into the company’s operations for irregularities, the Central Bank earlier this year terminated Al Rasheed Exchange Company’s license for “serious regulatory misconduct” and also removed the name of the exchange house from the Register.
Two insurance service providers’ registrations—Seagull Insurance Services Co. and Al Shorafa Insurance Services—were also revoked in June for breaking the legislation.