The Central Bank of the UAE (CBUAE) has revoked the operating licences of Dirham Exchange and RMB Commercial Brokers Co. due to severe breaches of regulatory laws. Both the firms have also been removed from the official Register.
This decision comes after the Central Bank identified critical regulatory misconducts, specifically in terms of anti-money laundering and attempts to bypass Central Bank’s directives. These directives primarily prohibited remittance transactions with certain nations.
In their statement, the Central Bank highlighted that both companies displayed a frail compliance structure. They consistently failed to honour their regulatory responsibilities and neglected to report such lapses to the CBUAE.
These administrative sanctions are in line with Article 137 of the Decretal Federal Law No. (14) of 2018 and Article 14 of the Federal Decree Law No. (20) of 2018. These articles pertain to the organisation of financial institutions, combating money laundering, and prohibiting the funding of terrorism and illicit groups.
The Central Bank emphasizes its commitment to upholding the transparency and integrity of the UAE’s financial system. It demands strict adherence to UAE laws and standards by all exchange houses, their staff, and Hawaladars.
Earlier this year, similar actions were taken against Al Rasheed exchange company for grave regulatory breaches. Additionally, in June, registrations of two insurance service providers, Seagull Insurance Services Co. and Al Shorafa Insurance Services, were cancelled due to legal infringements.
