Article (4): Conditions for Granting of Licence
N 1/2014 Effective from 3/1/2014- 4.1 The Central Bank may, after studying a licence application duly made in accordance with these Regulations and after being provided with all such information, documents and reports as may be required, grant or refuse to grant the licence.
- 4.2 A licence shall not be granted unless the following criteria are fulfilled with respect to the applicant:
- 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.
- The applicant must be a UAE national of not less than 21 years of age with full mental capacity and in case of applications made by companies the share of UAE nationals in the capital of the company shall not be less than 60% of the total paid up capital.
- A licensed person may not transfer ownership of the licence, for remuneration or otherwise, to any other party.
- 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.
- 4.3 A licensed person who is a natural person shall exercise direct oversight of the businesses of the establishment, and if he holds the position of Chief Executive Officer, he shall not be entitled to hold a similar position at another establishment.
- 4.4 No licence shall be granted unless the applicant disposes of the necessary personal reliability and professional qualifications as determined by the Central Bank as follows:
- Personal Reliability:
The applicant, or any of the founding members, shall be of good conduct and behaviour and shall not have been convicted for any offence involving dishonour or dishonesty or violence, and shall not have failed to honour his liabilities towards banks or other creditors and shall not have been declared bankrupt or reached a settlement with his creditors nor has been subjected to attachment of his assets or put under judicial receivership.
- Professional Qualifications:
The applicant or the person who is or shall be manager or controller of the exchange business shall have the appropriate theoretical knowledge of exchange business and the necessary management experience. The Central Bank must be provided with the CVs of the manager in charge and heads of major sections for review and the documents relating thereto. Nominees for key positions shall be interviewed by a special committee at the Central Bank to assess their competence and their technical/managerial capabilities, and test them, or some of them, if necessary. A special committee at the Central Bank shall also interview the owner/partners to ensure they have the required knowledge and business plan.
- Personal Reliability:
- 4.5 On reviewing an application for a licence made by any company consideration shall be given to any matters relating to another company within the same group or regarding any manager or controller thereof as concerns personal reliability or professional qualifications.
paragraph (a) of item (2) of Article (4) has been amended by the central Bank Board of Directors Resolution No 61/6/2016. You are viewing the latest version. To view previous version, click the version boxes below.
Version 1 (effective from 03/01/2014 to 25/08/2016)
- 4.2 A licence shall not be granted unless the following criteria are fulfilled with respect to the applicant:
- Paid-up capital of the licence applicant 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 applicant is a Limited Liability Company (L.L.C), regardless of the activity. The paid-up capital shall be increased by 10% for opening each additional branch.
- The applicant must be a UAE national of not less than 21 years of age with full mental capacity and in case of applications made by companies the share of UAE nationals in the capital of the company shall not be less than 60% of the total paid up capital.
- A licensed person may not transfer ownership of the licence, for remuneration or otherwise, to any other party.
- Paid-up capital of the licence applicant 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 applicant is a Limited Liability Company (L.L.C), regardless of the activity. The paid-up capital shall be increased by 10% for opening each additional branch.