4 Regulation and Supervision of RHP in the UAE
Effective from 15/8/2021| The CBUAE permits legitimate Hawala Activity as an important element of its continuous efforts to support financial inclusion and bring the unbanked population into the regulated financial system. To this end, Hawala is regulated by the Registered Hawala Providers Regulation issued by the CBUAE (``Circular No. 24/2019''). As per its articles 2.1 and 7.1 and Article 26 of the AML-CFT Decision, all providers carrying on Hawala Activity in the UAE must hold a Hawala Provider Certificate issued by the CBUAE; it is not permitted to carry on Hawala Activity without being registered with the CBUAE. |
RHP are supervised by the CBUAE, who has the right to examine the business of RHP and their agents and customers whenever it deems appropriate to ensure proper compliance with their statutory obligations under the legal and regulatory framework in the UAE, or impose supervisory action or administrative and financial sanctions for violations. Similar to its all LFIs, the CBUAE applies the principle of proportionality in its supervision and enforcement process, whereby small RHP may demonstrate to the CBUAE that the objectives are met without necessarily addressing all of the specifics cited in the legal and regulatory framework in the UAE.