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Penalization of the UAE Hawala Operators If Unregistered by December 2

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The UAE Central Bank has recently asked all Hawala service providers operating in the country to register officially. All non-registered Hawala providers are to earn a certificate before the deadline, which is on December 2, 2020. This is by regulations related to the Registration of Hawala Providers. The significance of this registration is to distinguish between the legal and illegal workers regarding the Hawala activities. Dubai lawyers suggest following such a compulsory legal obligation and report. 

It is important to note that these regulations make sure only registered service providers that are carrying out Hawala-related activities in UAE are operating. This new mandate reveals the continuous efforts of the UAE Central Bank to make sure it is lucid with financial transactions. UAE local authorities also require thorough legal assistance to procedures concerning the country’s efforts in combatting anti-money laundering, along with the financing of terrorism. The best lawyers in Dubai who have sufficient expertise and vast knowledge can provide the necessary legal assistance. Moreover, they can inform you of the significance of this necessary legal action. 

Penalties Set for NonCompliant Hawala Providers

UAE Central Bank has lately warned the service providers not to go beyond the grace period’s expiry. As a consequence, legal action will be undertaken under effective penal provisions. Legal actions include banking law provisions that stipulate the promotion or provision of Hawala activities even without being registered to Hawaladars Registry with the UAE Central Bank is considered an offense that is forbidden and is charged with a fine or imprisonment. This is apart from the administrative closure of business premises wherein Hawala activities are being carried out. 

The Central Bank issued the warning on two violations which can result in either massive fines or jail sentences, which are as follows: 

  • Failure in being registered by the 2nd of December 2020
  • Failure to comply with requirements as per regulation on Registered Hawala Providers.

The authorities are there to monitor and review all relevant companies and their activities. UAE regulations on Registered Hawala Providers and Central Bank law provide powers to competent government departments in inspecting and examining the entire area of a Hawala business. Lawyers in Dubai advise compiling all the necessary documentation before applying for registration.

Requirements for Registration of Hawala Providers

  • Application form complete with applicant details
  • Formal application letter with signature of authorized signatory 
  • A non-objection statement issued by shareholders about the application for a Hawala Provider Certificate from UAE Central Bank 
  • Commercial registration copy 
  • Tenancy agreement copy and address of business premises wherein the business is carrying out its activities
  • Memorandum of Association and Articles of Association (notarized)
  • Contact details for the manager in charge and the main office 
  • Registered Hawala Provider passport and ID card copy (applicable for renewal of registration)
  • Registered Hawala Provider’s photograph (colored and latest)
  • Registered Hawala Provider’s police clearance certificate 
  • Compiled and complete business introduction form 
  • Compiled and completed information form from the Central Bank 
  • Undertaking in opening a bank account wherein all transactions of the applicant have to be settled through, as well as details on the Central Bank account
  • Undertaking in amending license provided by relevant economic regulators to speculate Hawala activity 

Hawala Registration Service in the UAE

The seasoned regulatory experts based in the UAE can provide your business with the quickest Hawala registration service. The expert team of lawyers and legal consultants in the UAE set a high standard in meeting strict deadlines to address the registration needs of the clients. Lawyers in Dubai are very critical about the perfection in the legal procedure and therefore, make the necessary revisions before finalizing the paperwork. Additionally, Dubai lawyers are present all over the UAE for your legal assistance and support. 

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