"Central" monitors daily and the division of the transfer or execution on behalf of others is discovered

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Chairman of the group of banking and financial transfer institutions warned:

"Central" monitors daily and the division of the transfer or execution on behalf of others is discovered

Mohammed Al-Ansari speaks at the conference (Photo by Hassan Al-Masri)

Posted: Friday 20 July 2018

Hossam Abdulnabi (Dubai)

The exchange and remittance companies operating in the country send detailed data (daily) to the Central Bank on the operations it carries out, in order to check the transfers made in the country, in order to detect any attempts to tamper with or violate the rules of combating money laundering by customers, One of the amount that he wants to transfer to a number of remittances by different companies, not to raise suspicions in case the amount to be transferred abroad is large, according to Mohammed Ali Ansari, head of the banking and financial transfer institutions, and CEO of the company «Ansari Exchange».

In a statement to the «Union», on the sidelines of a seminar organized by the group of banking institutions and financial transfer in Dubai, entitled «financial crimes and the challenges of compliance in the UAE», that exchange companies and remittances are conducting an audit of the sender and the future of remittances, and investigate the purpose of Conduct the conversion process, in order to comply with the requirements set by the Central Bank of the UAE on the rules of Know Your Customer.

 

He pointed out that in some cases the client may commit a violation of "good faith" through the transfer of money in favor of another person to help him to evade taxes in some countries, so local companies are demanding customers to mention the reason for the conversion, especially in light of the increase in the number of operations that Is carried out daily in exchange and remittance companies, so that the number ranges from 70 to 80 thousand transactions between transfers or cash in the company «Ansari Exchange».

 

In response to a question about the existence of penalties including imprisonment and financial fines in the event of non-compliance with the new rules of compliance, which the central bank obliged exchange companies, Al-Ansari said that those penalties will make workers in exchange and remittances more serious in taking responsibility, Making "hands shaking" in companies in a way that negatively affects the size and speed of conducting remittances, pointing out that companies carry out training programs for employees in order to familiarize them with the rules and procedures required, in addition to the existence of specialized departments for auditing and compliance will help The absence of decisions may expose the employee or company to the issue or subject to fines.

"Compliance requirements in exchange and remittance companies have become one of the challenges facing the sector in general, which will lead to increased operating costs due to requirements for hiring qualified personnel, developing systems and indirect costs," said Ansari.

He pointed out that 75% of the new regulations approved by the Central Bank, especially the requirements of compliance, especially anti-money laundering rules, revealing that between 25% and 30% of exchange companies and remittances in the UAE will face difficulties to meet the requirements Remittances, and the volume of operations that make them in a poor financial position may force them out of the market.

The UAE Central Bank has committed financial institutions to rules to be implemented early next year, requiring the appointment of an oversight officer, ensuring that compliance requirements are applied, and applying the Know Your Customer rules to identify the sender and future of remittances.

 

Al Ansari called on exchange and remittance customers to respond to the new requirements set by the Central Bank, especially in terms of proving the source of funds, identifying the reasons for the transfer and identifying the future recipient of the transfer. He pointed out that meeting these requirements is a challenge for companies. First, the transaction is then scrutinized, but now under the anti-money laundering rules, companies are required to check the conversion transaction before it is executed, to ensure that the information is correct and accurate.

 

"The increase in penalties is one of the most important risks facing financial institutions in the world, with regulatory rules and procedures increasing from day to day," said Christoph Ames, chief financial officer at Dow Jones. "The amount of fines Its financial institutions are estimated at $ 8.9 billion, with global banks and large financial institutions facing sanctions, and the largest share of US institutions.

Amiz pointed out that at the global level, 1200 variables have been introduced into the financial institutions' business rules during the first half of this year, in addition to cancellation or modernization.