The UAE Central Bank urged all Hawala service providers operating in the country to register officially. All non-registered Hawala providers are to obtain a certificate before the deadline, which is on December 2, 2020. This is in accordance with regulations related to the Registration of Hawala Providers.
The regulations make sure only registered service providers that are carrying out Hawala-related activities in UAE are operating. This new mandate reflects the continuous efforts of the UAE Central Bank in making sure it is fully transparent with financial transactions. UAE local authorities also require full compliance to procedures in relation to the country’s efforts in combatting anti-money laundering, as well as the financing of terrorism.
UAE Central Bank gave a warning to service providers that go beyond the grace period’s expiry. Legal action will be undertaken in accordance with effective penal provisions. Legal actions include banking law provisions which stipulate promotion or provision of Hawala activities even without being registered to Hawaladars Registry with the UAE Central Bank is considered an offense that is punishable by a fine or imprisonment. This is apart from the administrative closure of business premises wherein Hawala activities are being carried out.
The Central Bank gave a warning on two violations which can result in either massive fines or jail sentence, which are as follows:
The authorities are monitoring and auditing all relevant companies and their activities. UAE regulations on Registered Hawala Providers and Central Bank law provide powers to competent government departments in inspecting and examining every single area of a Hawala business.
At HHS Lawyers, our seasoned regulatory experts based in UAE can provide your business the quickest Hawala registration service. Our team of lawyers and legal consultants in UAE set a high standard in meeting strict deadlines in order to address the registration needs of our clients. Call us today!