Central Bank takes over UAE Exchange operations

Dubai - The regulator said it will take additional action, if necessary.

The UAE Central Bank said it had taken over the embattled UAE Exchange to oversee its operations.
The remittances and foreign exchange firm earlier this week stopped new transactions after irregularities were found at its parent company Finablr.
"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. 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," the Central Bank said in a statement issued late on Tuesday.
A press statement issued by Central Bank said that an inspection team has started an examination on the UAE Exchange in order to verify its compliance with the applicable laws and regulations. The regulator said it will take additional action, if necessary, once the examination is completed.
Earlier, its parent company Finablr - which is listed on London Stock Exchange, temporarily suspended listing of the shares.
Its group CEO Promoth Manghat also decided to step down last week as well as from all other directorships and other offices of entities within the Finablr Group. The Board accepted his resignation and thanked Promoth for his contribution to the Group over many years. Promoth had agreed to continue to support the Group while the Board finds a suitable successor.
-waheedabbas@khaleejtimes.com