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  • Amendments to Regulations re Licensing and Monitoring of Exchange Business

    RES 61/6/2016 Effective from 25/8/2016

    Chairman of the Board

    Having perused the provisions of Union Law No. (10) of 1980 concerning the Central Bank, the Monetary System and Organization of Banking;

    Board of Directors' following Resolutions:

    1. Resolution No. 31/2/1986 issued on 16/7/1986, regarding organization of the foreign exchange profession in the UAE.
       
    2. Resolution No. 123/7/92 issued on 29/11/1992, regarding regulating of money changing business in the UAE.
       
    3. Resolution No. 204/7/98 issued on 03/11/1998.
       
    4. Resolution No. 15/2/2013 issued on 12/03/2013, regarding new requirements for licensing of money changing business in the UAE.
       
    5. Resolution No. 77/7/2013 issued on 27/10/2013, regarding Regulations re Licensing and Monitoring of Exchange Business.
       
    6. Resolution No. 104/8/2015 issued on 21/12/2015, regarding postponement of the implementation of certain requirements of Regulations re Licensing and Monitoring of Exchange Business.

    Circular No. 24/2000 - Regulation concerning Procedures for Anti-Money Laundering and its amendments.

    The Central Bank's Board of Directors has issued the following resolution:

    • Article One:

      The texts of paragraph (c) of Article (3) and paragraph (a) of item (2) of Article (4) of Board of Directors Resolution No. 77/7/2013 shall be replaced with the following texts:

      • Article (3): Application for Licence

        c) 1. An undertaking to provide, in case the application is approved, a bank guarantee drawn in favor of the Central Bank issued by a bank licensed in the UAE, provided that the guarantee value at any point of time shall not be less than the higher of the following:

        1. 100% of the minimum paid-up capital required as specified in Paragraph (a) of Article (4.2) of these Regulations, or
           
        2. 5% of the monthly remittance average value of the previous financial year, with a maximum of AED 75,000,000 (Seventy Five Million).

        2. In the case of carrying on payment of wages activity, the value of payments using WPS shall be restricted to the bank guarantee drawn in favor of the Central Bank according to the Standards issued as indicated in Article (11) bis of these Regulations.

      • Article (4.2): Conditions for Granting of Licence

        1. Paid-up capital of the Licensed Person is not less than AED 2,000,000 (Dirhams two million) for carrying on purchase, sale and exchange of foreign currencies in the form of bank notes, coins and travelers cheques, and not less than AED 5,000,000 (Dirhams Five Million) for carrying on remittance business within and outside the UAE in addition to sale and purchase of foreign currencies and travelers cheques, and not less than AED 10,000,000 (Dirhams Ten Million) for carrying on payment of wages through connecting to the Central Bank's system in addition to remittance business and sale/purchase of foreign currencies and travelers cheques, and not less than AED 50,000,000 (Dirhams fifty million) if the legal status of the Licensed Person is a Limited Liability Company (L.L.C), regardless of the activity.

    • Article Two:

      A new Article No. (11) bis shall be added to the Board of Directors Resolution No. (77/7/2013), as follows:

      • Article (11) bis: The Standards of the Regulations Regarding Licensing and Monitoring of Exchange Business "the Standards".

        The Central Bank shall issue the following Standards:

        1. Licensing and Continued Obligations Standards
        2. Management of the Business and Governance Standards
        3. Risk Management and Security Standards
        4. Anti-Money Laundering Compliance Standards
        5. Customer Protection Standards
        6. Appendices

        Appendix 1: Definitions

        Appendix 2: Applicable Laws, Regulations and Notices

        Appendix 3: List of Compulsory Reports and Forms

        Appendix 4: Non-Compliance Charges

        The Standards are an integral part of the Regulations Regarding Licensing and Monitoring of Exchange Business, and all Licensed Persons shall adhere to the provisions of the Standards once circulated and come into effect

    • Article Three:

      This Resolution shall be published in the official gazette in both Arabic and English Languages and become effective from date of publication, and shall be communicated to whomsoever is concerned for implementation.