UAE Central Bank has revoked the licenses of two exchange companies after inspections by the bank revealed regulatory misconduct, including misconduct related to anti-money laundering.
In addition to evasion of UAE Central Bank instructions regarding forbidden money transfer transactions with certain countries.
The Two exchange companies whose licenses were revoked by the UAE Central Bank are Al Dirham Exchange and RMB Commercial Mediation.
Moreover, the results of the inspections revealed that the compliance framework of the two exchange companies is weak.
Also the two exchange companies have failed to comply with their regulatory obligations and report regulatory violations to the Central Bank – CBUAE.
Actually, these administrative sanctions come in line with the Central Bank commitment to ensure that all exchange and money transfer companies.
In addition to their owners and employees, comply with the laws, systems, and standards approved by the Central Bank.
All of that aims to preserve the transparency and integrity of the United Arab Emirates financial system.
The administrative sanctions that the Central Bank of the UAE may impose on exchange and money transfer companies include the below:
- Revocation of license
- Removal from the register
- Imposition of financial penalties
- Issuing instructions or directives
- Temporary suspension of activity
The Central Bank of the UAE may also refer companies that violate laws and regulations to the competent authorities for the necessary legal action.
In fact these administrative sanctions call on exchange and money transfer companies to comply with applicable laws and regulations.
Also they call on them to strengthen their anti-money laundering and terrorist financing frameworks.
In addition to enhancing the transparency of their financial transactions.
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