The Central Bank of the UAE downgraded the licences of seven exchange houses on Monday after the companies violated regulations such as anti-money laundering rules.
The exchange houses are now banned from carrying out any transactions related to remittances or wage payments, the Central Bank said in a statement on Monday. They can only deal in the sale and purchase of foreign currencies and traveller's cheques, it added.
“This decision comes after the failure of these exchange houses to regularise their status during the grace period granted by the Central Bank,” the financial institution said, explaining that the companies “violated the Central Bank’s regulations, including anti-money laundering regulations”.
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Remittances are a rich source of business for exchange houses in the UAE. In the first quarter of this year, the amount sent by expatriates to their home countries rose by 17 per cent to Dh43.5 billion compared with Dh37.1bn a year ago, according to the state-run Wam news agency.
Indian workers led the remittances with Dh16bn, followed by Pakistanis, Filipinos and Omani expatriates. About 70 per cent of remittances were done through money exchanges.
The Central Bank's licence downgrade decision has affected seven exchanges: Taher Exchange, Al Hadha, Al Hemriya Exchange Company, Dubai Express Exchange, Sanaa Exchange, Cosmos Exchange and Bin Bakheet Exchange.
Abdul Salim, an accountant at Sanaa Exchange located near the Dubai Gold Souk, says the exchange house did not know why the Central Bank had downgraded their licence.
"I don't know why this has happened," said Mr Salim. "The Central Bank stopped all remittances and salary payments last week. My manager is out of the country and when he comes back he will meet the Central Bank - then we will know what the reason is. This is having a big effect on business. The business is facing a big problem."
The Central Bank said “it will not tolerate violations of financial institutions to its regulations and instructions”, and urged UAE consumers not to remit funds or pay wages via the exchange houses mentioned.
Company profile
Company name:+Dharma
Date started:+2018
Founders:+Charaf El Mansouri, Nisma Benani, Leah Howe
Based:+Abu Dhabi
Sector:+TravelTech
Funding stage:+Pre-series A
Investors:+Convivialite Ventures, BY Partners, Shorooq Partners, L& Ventures, Flat6Labs
UAE currency: the story behind the money in your pockets
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Directors: Scott Beck, Bryan Woods
Stars: Adam Driver, Ariana Greenblatt, Chloe Coleman
Rating: 2/5
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
SPECS
Engine: 1.5-litre turbo
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List of alleged parties
May 12, 2020: PM and his wife Carrie attend 'work meeting' with at least 17 staff
May 20, 2020: They attend 'bring your own booze party'
Nov 27, 2020: PM gives speech at leaving party for his staff
Dec 10, 2020: Staff party held by then-education secretary Gavin Williamson
Dec 13, 2020: PM and his wife throw a party
Dec 14, 2020: London mayoral candidate Shaun Bailey holds staff event at Conservative Party headquarters
Dec 15, 2020: PM takes part in a staff quiz
Dec 18, 2020: Downing Street Christmas party
The five pillars of Islam
Premier Futsal 2017 Finals
Al Wasl Football Club; six teams, five-a-side
Delhi Dragons: Ronaldinho
Bengaluru Royals: Paul Scholes
Mumbai Warriors: Ryan Giggs
Chennai Ginghams: Hernan Crespo
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TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
Know your camel milk:
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Use it: In your morning coffee, to add flavour to homemade ice cream and milk-heavy desserts, smoothies, spiced camel-milk hot chocolate.
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SPECS
Engine: Two-litre four-cylinder turbo
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Company Profile
Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices
Challenge Cup result:
1. UAE 3 faults
2. Ireland 9 faults
3. Brazil 11 faults
4. Spain 15 faults
5. Great Britain 17 faults
6. New Zealand 20 faults
7. Italy 26 faults
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.