CBUAE Cancels money exchange house, commercial broker company licences

Central Bank of UAE Takes Strong Actions Against Violations in Financial Sector

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License Revocations and Sanctions for Regulatory Violations

The Central Bank of the UAE (CBUAE) has announced its decision to revoke the licenses of two entities, Dirham Exchange and RMB Commercial Brokers Co, due to serious violations of regulatory laws.

The actions were taken following an appeals procedure and are in line with Federal Laws related to the Central Bank, Financial Institutions, Activities, Combating Money Laundering Crimes, Terrorism Financing, and Financing of Illegal Organizations.

Serious Regulatory Misconduct Uncovered

The regulatory authority revealed that the revocations were prompted by the detection of significant regulatory misconduct, including instances of anti-money laundering breaches and collusion to evade the Central Bank's instructions.

Notably, the exchange house, Dirham Exchange, was found to have engaged in remittance transactions with certain countries despite explicit directives to the contrary. The Central Bank cited a lack of compliance framework and failure to fulfill regulatory obligations as key factors contributing to these actions.

Safeguarding Transparency and Integrity

The Central Bank reaffirmed its commitment to upholding the highest standards of transparency and integrity within the UAE's financial system. It stressed the importance of ensuring that exchange houses, their proprietors, employees, and financial intermediaries adhere to the laws, regulations, and established standards of the UAE. These measures are implemented to ensure the robustness of the financial sector and to counter any potential threats related to money laundering, terrorism financing, and other illegal activities.

Continued Vigilance and Accountability

The recent actions taken by the Central Bank, including license revocations and administrative sanctions, underscore the vigilance and accountability required to maintain a stable and reputable financial ecosystem. Similar actions have been taken earlier in the year, reflecting the regulatory body's determination to address malpractices and breaches in the financial industry.

By imposing stringent measures and enforcing compliance, the Central Bank aims to fortify the UAE's financial landscape, thereby fostering trust among stakeholders and contributing to the overall economic well-being of the nation.

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