The UAE Central Bank has taken action against an exchange house operating in the Emirates by revoking its license and removing its name from the register due to noncompliance and regulatory misconduct.
The banking regulator conducted an examination and found evidence of serious misconduct by Al Rasheed Exchange House, including deliberately suppressing remittance turnover, failing to meet liquidity requirements, providing false information, engaging in anti-money laundering malpractice, and transferring its license without obtaining a letter of no objection from CBUAE.
The UAE, being the Arab world’s second-largest economy, has recently implemented several measures to regulate its financial sector. It has implemented strict laws and regulations to prevent money laundering, the financing of terrorism, and other financial crimes.
The Central Bank recently issued new guidelines for licensed financial institutions, including banks, finance companies, exchange houses, insurance companies, agents, and brokers, to combat these crimes. The recent regulatory examination found that Al Rasheed Exchange had a weak compliance framework and failed to fulfill its regulatory obligations.
No appeal was filed within the given time frame. The Central Bank aims to ensure that all exchange houses, their owners, and staff adhere to UAE laws and regulations to maintain the transparency and integrity of the UAE financial system.
