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Central bank issues 55 licences to hawala brokers

The decision is line with the resolutions of the 'Abu Dhabi Declaration' on hawala, which adopted among other resolutions, a decision to legalise the hawala system to ensure that alternative money transfer systems are not used and abused by money launderers and terrorists.

In a report issued here yesterday ahead of the Annual Meetings of the World Bank Group and the International Monetary Fund due to begin from 23 -25 September, the UAE Central Bank said the issuance of the certificates to the money wire agents was part of the country's efforts to curb any illicit money transfer activities.

"One of the main benefits that emanated from legalisation of the hawala system is that brokers and intermediaries are bound to provide details of money transfers that have been made through their offices or agents. They are also bound, as per their licencing terms, to report any dubious money transfers to the Central bank immediately" said the report.

It added that special forms have been provided to brokers for such purposes.

This move will effectively curb any money laundering for terror sponsoring activities, as records will be accessible when ever required from money brokers, noted the report.