Dubai - Mubasher: The Central Bank of the UAE have ordered money exchange houses to raise their standards, after several banks cut ties with them due to concerns about the risk of illicit financial flows, as reported by Reuters.
Around 125 exchanges have struggled in recent years as a growing number of US dollar correspondent banks, relied upon to clear dollar trade, and local lenders cut ties with them.
The banks have often cited the prohibitive compliance costs they must have in place to ensure they’re not doing business with exchange houses laundering money or financing terror.
The central bank recently published a 150-page guide that explains the standards that exchange houses must comply with by January 2019 or risk fines and, in the most extreme case, having their licences revoked.
