Hawala operators in the UAE must register before December 2 to avoid penalties

The Central Bank of the UAE has urged hawala providers operating across the country to officially register to obtain the hawala provider certificate prior December 2, 2020.

This is in accordance with the registered hawala providers regulation.

The regulation ensures that only registered Hawala providers carry related activities in the UAE, in accordance with the law and certificate issued by the Central Bank.

Furthermore, the directive complements the CBUAE’s efforts to ensure transparency of all financial transactions and compliance with the anti-money laundering and countering financing of terrorism procedures in the country.

CBUAE has further warned that beyond December 2, relevant legal actions shall be taken as per the effective penal provisions, official news agency WAM reported.

These actions include provisions of the banking law, which stipulate that the provision or promotion of Hawala activities without registering is an offence punishable by imprisonment and fine.

The legal actions will also include the administrative closure of the premises where the activities were carried on.