An External Auditor must perform the following procedures, at a minimum, on the Remittance Intermediate Account and report their findings as required by Article 9 (n) and (o) of Notice 1/2014 issued by the Central Bank (i.e. Regulations Regarding Licensing and Monitoring of Exchange Business) and Paragraph 4.13 of Chapter 4 of the Standards.

1. 1.Confirm that the Licensed Person maintains a “Designated Remittance Intermediate Account” with a Bank licensed by the Central Bank of the UAE;
2. 2.Verify and confirm that the Licensed Person deposits the funds received from its remittance customers directly into the “Designated Remittance Intermediate Account” before the end of banking hours on the next business day;
3. 3.Check whether the funds in the “Designated Remittance Intermediate Account” related to the remittance by customers are ‘ring-fenced’ against withdrawals for any purpose other than prefunding/settling the foreign correspondent accounts;
4. 4.Obtain the General Ledger of the Remittance Intermediate Account for the relevant month;
5. 5.Ensure that the relevant outward remittance transactions are recorded through the Remittance Intermediate Account in the General Ledger;
6. 6.Check, on a sample basis (risk based), that the transactions from the Remittance Intermediate Account in the General Ledger are transferred to the respective ledger accounts of foreign correspondents as and when the remittance instructions are issued (i.e. upon payment order transmission) to the respective foreign correspondents;
7. 7.Check, on a sample basis (risk based), that the foreign correspondent accounts are sufficiently funded before issuing the remittance instructions to the respective foreign correspondents or settlement is made whenever required in order to pay the beneficiary without any delay;
8. 8.Obtain statements for the relevant month, on a sample basis (risk based), from foreign correspondents and from the bank where the “Designated Remittance Intermediate Account” is maintained. Ensure that the amount of local currency, balances in the Designated Remittance Intermediate Account and foreign banks is sufficient to cover the liabilities towards the remittance customers; and
9. 9.The External Auditor and the Licensed Person must agree on additional procedures depending on the nature, size and complexity of the business of the Licensed Person.

G. Version Control Table

The Standards for Exchange Business in the UAE