UAE central bank suspends major foreign exchange bourse Dirham Exchange

16th of August, 2023

The Central Bank of the UAE (CBUAE) has revoked the license of Dirham Exchange. Data on it is already absent in the register due to "major violations" of regulations. This is indicated in a statement by the country's financial regulator.

CBUAE has taken strict measures against two financial institutions operating in the UAE to demonstrate its commitment to maintaining regulatory integrity and combating violations of financial law. This case involves the revocation of a financial license to operate in the Arab Emirates. The second financial institution to which sanctions measures were applied was the brokerage firm RMB Commercial Brokers Co. Its registration was canceled.

The penalties against the two companies were imposed in accordance with the following regulations:

  • Articles 137 of Federal Law No. 14-2018 on CBs and Regulations of Financial Institutions in the UAE;
  • Article 14 of Federal Law No. 20-2018 on AML regulations.
  • CBUAE conducted inspections and found non-compliance with the requirements for conducting financial activities. Both institutions engaged in the following misconduct:
  • violated anti-money laundering (AML) regulations;
  • Transactions that circumvented the UAE Central Bank's explicit instructions, such as transferring funds to blacklisted countries.

The findings of the inspections highlighted the weak compliance structure, the inability of organizations to meet their regulatory obligations and to report any regulatory violations to CBUAE in a timely manner.

To avoid such sanctions from the Central Bank, contact the experts at Intelligent Solution Group for accounting support for financial institutions in the UAE. Experienced accountants have full knowledge of the legislation of the Arab Emirates and its latest changes. They will assist in bookkeeping, reporting and auditing.

 

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