The Central Bank of UAE has launched an investigation into the operations of the embattled UAE Exchange Centre, which had temporarily stopped accepting new transactions a few days ago in the aftermath of troubles brewing at its holding company Finablr founded by the Indian entrepreneur BR Shetty in the midst of financial scandals related to NMC Healthcare, which was also founded by him.
In a statement, the CBUAE said its inspection team started an examination on the UAE Exchange on Wednesday, "in order to verify its compliance with the applicable laws and regulations. The Central Bank of UAE will take additional action, if necessary, once the examination is completed," it added.
The apex bank said it will oversee operations management of the exchange, while "only its Wage Protection System will be allowed to operate until further notice."
"In order to protect consumers, the Central Bank of UAE has required the exchange house to swiftly settle outstanding remittances and all other already initiated transactions," the statement said.
The exchange house set up a committee of independent non-executive directors to carry out a comprehensive review of the company's liquidity and cashflow management functions, its financial and debt position.
UAE Exchange, which has more than 9,000 employees across 800 offices in over 40 countries, said while new transactions would not be undertaken, all its customer service touchpoints and branches would remain open to support and attend to any queries customers may have
Finablr, the holding firm of currency-exchange businesses including UAE Exchange, Express Money and Travelex Holdings, which has beset by a ransomware attack, said on Monday that the Financial Conduct Authority of the London Stock Exchange has agreed to the temporary suspension of listing of its shares at the request of the company. In the midst of the worsening turmoil, Promoth Manghat, Finablr's chief executive officer, also stepped down on Monday.
A Finablr statement, coinciding with the temporary suspension of its listing on the London Stock Exchange, said Promoth has agreed to continue to support the group while the board finds a suitable successor.
- issacjohn@khaleejtimes.om
Published: Wed 18 Mar 2020, 7:17 PM
Updated: Mon 23 Mar 2020, 2:12 PM
E-Paper
Sign In
0°C 
