UAE Central Bank revokes Muthoot Exchange license
The Central Bank of the UAE (CBUAE) has revoked the operating license of Muthoot Exchange, a prominent exchange house in the UAE. The decision includes striking Muthoot Exchange’s name off the official register, effectively ending its operations within the country. This action comes as part of regulatory measures to ensure compliance and uphold the integrity of financial services in the UAE.
The decision to revoke Muthoot Exchange's license was made in accordance with Article 137 (1) of the Decretal Federal Law No. (14) of 2018, which pertains to the Central Bank and the regulation of financial institutions and activities, along with its subsequent amendments.
This legal framework provides the Central Bank of the UAE (CBUAE) with the authority to enforce compliance and ensure that financial institutions operate within the established regulatory standards. The revocation underscores the CBUAE's commitment to maintaining the integrity and stability of the financial sector in the UAE by addressing non-compliance issues effectively.
The Central Bank of the UAE (CBUAE) conducted an examination revealing that Muthoot Exchange failed to maintain the required levels of paid-up capital and equity as stipulated by applicable standards and regulations. This shortfall in financial stability prompted the CBUAE to revoke the exchange house’s license, reflecting its commitment to enforcing regulatory compliance and ensuring the robustness of financial institutions within the UAE.
The Central Bank of the UAE (CBUAE) is dedicated to ensuring that all exchange houses, including their owners and employees, comply with UAE laws, regulations, and standards. This oversight is crucial for maintaining transparency and integrity within the country's financial system. By enforcing these rules, the CBUAE aims to protect the stability and trustworthiness of the UAE’s financial sector.
Comments