The Central Bank of the UAE or CBUAE announced on Wednesday that it had revoked the license of Dirham Exchange, a money exchange business in the UAE, due to severe violations of regulatory laws. Additionally, the regulator also revoked the registration of RMB Commercial Brokers Co, a company operating in the UAE.
The Central Bank took these administrative actions after detecting serious regulatory misconduct, including instances of anti-money laundering and collusion to evade the Central Bank’s instructions regarding remittance transactions with specific countries.
The Central Bank clarified that these decisions followed an appeals procedure outlined in the Decretal Federal Law No. (14) of 2018 and the Federal Decree Law No. (20) of 2018 on Combating Money Laundering (AML) Crimes, the Financing of Terrorism, and the Financing of Illegal Organizations.
CBUAE emphasized its commitment to ensuring that exchange houses, their owners, employees, and other financial entities abide by UAE laws, regulations, and standards to maintain transparency and integrity within the UAE financial system.
This move comes after previous instances of regulatory misconduct, such as the revocation of the license of Al Rasheed exchange company earlier this year for similar reasons, according to Khaleej Times.
Furthermore, in June, the Central Bank also cancelled the registrations of two insurance service providers, Seagull Insurance Services Co. and Al Shorafa Insurance Services, due to their violations of the laws.