2.4.1The Licensed Person must provide a bank guarantee favouring the Central Bank from a bank licensed in the UAE, provided that the value of the bank guarantee at any point in time shall not be less than the higher of the following:
a)100% of the minimum paid-up capital for each category of license as detailed under Paragraph 2.3 of this Chapter; or
b)5% of the monthly remittance average value of the previous financial year, with a maximum of AED 75 million (Seventy Five Million UAE Dirhams).
2.4.2The Licensed Person must submit a Certificate of Remittance Value, issued by the External Auditor, to the Supervision & Examination Division of the Banking Supervision Department within two (2) months from the end of every financial year. This certificate must be submitted on the “Certificate of Remittance Value (CRV) Form” provided by the Central Bank (Refer to Appendix 5 for CRV Form);
2.4.3The Licensed Person must increase the value of bank guarantee favouring the Central Bank as required under Paragraph 2.4.1 (b) of this Chapter upon receiving a letter from the Central Bank demanding an additional bank guarantee. The additional bank guarantee must be submitted to the Central Bank prior to the deadline stipulated in the letter;
2.4.4The bank guarantee favouring the Central Bank must be in the prescribed format provided by the Licensing Division. All original bank guarantees must be delivered directly to ‘the Licensing Division, Banking Supervision Department, Central Bank of the UAE, Abu Dhabi’;
2.4.5The monthly turnover of wages to be paid using WPS is restricted, as below, based on the value of the bank guarantee and the risk grading of the Licensed Person awarded by the Central Bank (Please refer to Paragraph 1.2.3 (b) of Chapter 1 for further information):
a) Low risk
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Thirty (30) times the value of the bank guarantee
b) Medium risk
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Twenty (20) times the value of the bank guarantee
c) High risk
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Ten (10) times the value of the bank guarantee
d) Very High Risk
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Not permitted to carry out payment of wages using WPS
e) Unacceptable Risk
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Not permitted to carry out payment of wages using WPS
2.4.6The Central Bank reserves the right to determine the risk grading of the Licensed Person based on predefined parameters and findings contained in the Transmittal Letter issued after every examination. The decision of the Central Bank in this regard shall be final; and
2.4.7The risk grading awarded to the Licensed Person and the details of predefined parameters, on which the risk grading is based, will be highlighted in the Transmittal Letter issued by the Central Bank after the examination (Refer to Paragraph 5.3 of Chapter 5).