UAE Exchange placed under Central Bank supervision

All operations of the UAE Exchange Centre have been placed under the supervision of the central bank, it was announced on Tuesday.

The move comes after Finablr, the parent company of the remittance house, said that it will hire a consultancy to look at “insolvency”.

Earlier this week, UAE Exchange said that it was stopping all new transactions to resolve “technical issues”.

UAE Exchange Centre operates more than 100 branches across the country.

“UAE Exchange has stopped new transactions through its branches and online platforms, with the exception of the operation of wage protection system, which it is allowed to operate until further notice,” the Central Bank said in a statement.

“In order to protect consumers, the Central Bank of UAE has required the exchange house to swiftly settle outstanding remittances and all other already initiated transactions.”

An inspection team from the Central Bank has started examining UAE Exchange to verify its compliance with the applicable laws and regulations.

Additional action against UAE Exchange will be taken, if necessary, it said.

Finablr – which is listed on London Stock Exchange – said on Tuesday that it had hired an adviser to prepare for potential insolvency proceedings and temporarily suspended listing of the shares.

The London-listed firm is working with an unidentified accounting firm on “rapid contingency planning,” according to a regulatory filing Tuesday. It’s taking the action “with a view to maximising value in the group,” Finablr said in the filing.

With inputs from Bloomberg