25 Nov 2020
The UAE Central Bank will start taking legal action against non-registered Hawala service providers when registration deadline expires on December 2, 2020, after which no Hawala service provider will be allowed to operate in the country.
“After the deadline has expired, the Central Bank will impose the necessary legal and supervisory measures available in the law. This includes imprisonment and fine, in addition to administrative penalties which may include closure of the operating premises,” the Central Bank said in a statement to Khaleej Times.
Hawala, also knowns as hundi, is a process whereby money value is transferred to individuals in other countries, and is usually used in remote places of those countries, which do not have access to banking services.
Regularising Hawala is an important element in Central Bank’s continuous efforts to maintain transparency of fund transfer transactions, and enhance the reporting systems as per the international standards, especially with regards to Anti-Money Laundering and Combating Terrorist Financing (AML/CFT).
As per provisions of Circular No. 24/2019 issued by the Central Bank, registration is mandatory for Hawala service providers, or informal money transfer service providers operating in the UAE, to regularise their status before December 2, 2020.
By Waheed Abbas, Khaleej Times, 24 November 2020
Read more at Khaleej Times
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