Giving 90 days a deadline for registration within the new system
The Central Bank announces a mandatory registration system for money transfer brokers
All hawala brokers' activities will be subject to registration, monitoring and auditing by the Central Bank.
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Abdul Hamid Muhammad Saeed Al-Ahmadi: "Strengthening the framework of the financial system through procedures that ensure complete transparency."
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Yesterday, the Central Bank announced the mandatory registration system for money transfer brokers or informal money transfer service providers operating in the UAE.
The bank stated in a statement yesterday that the new registration system is in line with the regulations and systems of registered hawala brokers (System No. 24/2019), and reflects the Central Bank's continuous efforts to maintain the integrity of the state's financial systems.
Monitor and audit
According to the Central Bank, all hawala brokers activities will be subject to registration, monitoring and auditing, based on the law and regulations for countering money laundering and combating terrorist financing in the country, and according to the new system, hawala brokers must register all their activities with the Central Bank.
Ensure transparency
Commenting on the framework of the new registration system, the Governor of the Central Bank, Abdul Hamid Muhammad Saeed Al-Ahmadi said: “The Central Bank is committed to strengthening the framework of the financial system in the UAE, through systems and procedures that will ensure complete transparency and suitability for all financial transactions that arise from The United Arab Emirates, for the applicable rules and regulations.
He added, "The importance of the registration system for hawala brokers in this field is evident, as we are working to enhance our efforts to maintain high-quality reporting systems, especially with regard to improving regulations on countering money laundering and combating terrorist financing in the country."
The Governor of the Central Bank affirmed the bank’s full commitment that only registered hawala brokers will be allowed to work in the UAE, according to the law and according to the certificate issued by the bank.
Hawala brokers
According to the Central Bank’s statement, hawala brokers are those who provide financial services to facilitate the process of transferring funds from one individual to another using non-bank settlement methods.
Accordingly, the mandatory registration process will provide the official regulatory system for the work of hawala brokers within the various methods adopted for transferring money in the UAE, along with exchange companies.
According to the banking law, the Central Bank will take all necessary legal measures against hawala brokers who will not register within the new system within 90 days from the date of this announcement. The procedures will include imposing a fine and imprisonment.
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