The Central Bank of the UAE announced recently the mandatory registration system that was launched for informal money transfer providers or money transfer brokers that are operating within the UAE. The new system for registration is compliant to the systems and regulations which apply to registered brokers. System No 24 of 2019 reflects the continuous efforts of government authorities and the Central Bank in maintaining the integrity of the financial systems of the state.
Hawala brokers monitoring and auditing in UAE
All the activities of hawala brokers will now be subject to monitoring and scrutiny by enforcers based on regulations that pertain to combating terrorist financing in UAE and money laundering. According to the brand new system, the informal money transfer providers will have to register and report their activities to the Central Bank of UAE.
H.E Abdulhamid M. Saeed Alahmadi, the appointed governor of UAE Central Bank, said the institution is fully committed to ensuring- only hawala brokers that are registered operate within the country. Hawala brokers are to comply with the local legislation and possess appropriate certificates issued by the UAE Central Bank.
It’s worth noting hawala brokers provide financial services that facilitate the money transfer process from one individual onto another through non-bank methods for settlement. The mandatory process of registration provides the official system for regulation accounts for the various methods that are adopted by hawala providers in transferring money in and out of the UAE.
As per the bank authorities, the UAE Central Bank will be taking all legal measures against the hawala brokers that don’t register with the new system less than ninety days starting from the date the system was released. Procedures have to be followed to the dot or else the authorities will be forced to impose a fine or imprison violators.
For more information regarding the registration process, call us here in HHS Lawyers.