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UAE Central Bank revokes exchange company's licence over serious violations

This is the second company whose licence has been cancelled this month; another firm was fined Dh1.8 million earlier for not adhering to regulations

Published: Mon 27 Feb 2023, 2:52 PM

Updated: Mon 27 Feb 2023, 9:38 PM

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The Central Bank of the UAE (CBUAE) on Monday said it revoked the licence of Al Rasheed exchange company for “serious regulatory misconduct.”

The regulator said it also struck off the name of the exchange house from the Register after conducting an examination of the company’s operations for malpractices.

This is the second company whose licence has been cancelled this month. Another financial company was fined Dh1.8 million for not adhering to the regulations.

The decision to revoke Al Rasheed's licence was taken pursuant to Article 137 of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank and Organisation of Financial Institutions and Activities.

“The exchange house was found to have been deliberately suppressing remittance turnover, failing to meet its liquidity requirements, providing incorrect information to the Central Bank, engaging in serious anti-money laundering malpractice and transferring its licence without obtaining a letter of no objection from the CBUAE,” the regulator said on Monday.

The exchange had a weak compliance framework and had failed to comply with its regulatory obligations. The time set for submitting an appeal has expired and an appeal has not been submitted, the Central Bank said.

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