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Hawala Providers May Face Penalties for Unregistered Operations in the UAE


The Central Bank of UAE has issued a crucial mandate for all HAWALA service providers operating in the country. They should officially register in December 2020. 

This specification comes under the Regulations for the Registration of HAWALA Providers in UAE. The basic motive behind this is to ensure that only registered service providers engage in HAWALA-related activities within the United Arab Emirates. 

Visit: Lawyers in UAE expert in Business or Corporate Disputes.

This directive directly underscores the Central Bank of UAE’s commitment and dedication to transparency in financial transactions. Besides, it aligns the local authorities with its efforts to combat criminal activities including money laundering and terrorism financing in the country.

If the HAWALA service providers in the UAE fail to meet the registration deadline. This will result in facing legal repercussions by existing penal provisions. It is attached to penalties. The penalties are clearly outlined in banking laws. The laws aim at stipulating, promoting, and conducting HAWALA activities in the UAE. 

Furthermore, the penalties are directed at those who fail to get proper registration in the Hawaladars Registry. It is important to get registered with the Central Bank of UAE to avoid financial crimes and their repercussions. In the absence of a proper register means that they have constituted an offense.

Therefore the offenders may be subject to fines, imprisonment, and punishments. It is essential for the administrative closure of their business premises where HAWALAA activities are conducted.

The UAE Central Bank has especially focused on two specific violations. This may result in substantial fines or imprisonment for the offenders. Firstly, it is the Failure of registration by December 2, 2020.

Secondly, it is the Failure to comply with the requirements. The specifications are outlined in the Regulations for Registered HAWALA Providers.

Nonetheless, the government authorities of the UAE are actively monitoring the businesses and their activities. Besides, they also audit relevant companies and their HAWALA activities.

UAE has a set of rules and regulations governing Registered HAWALA Providers. The Central Bank of UAE sets laws that grant competent government departments the authority to inspect. They also dedicate the power to scrutinize all aspects of a HAWALA business in the country.

There are specified Requirements for HAWALA Provider Registration in the UAE. In this article, we will dwell into the registration procedure in detail. 

To register as a HAWALA service provider in the UAE. Top Law Firms in UAE can be consulted this regard. It is significant for the companies and businesses to meet the specifications below:

  • Firstly, they need the application form for registration in the UAE. They need to complete the application form with all the necessary details of the applicants.
  • Secondly, there should be a Formal Application Letter. It is a letter that includes a formal application letter along with the signature of an authorized signatory.
  • Thirdly, it is essential to attach a Non-Objection Statement to it. They need to obtain a non-objection statement from shareholders. The letter is regarding the application for a HAWALA Provider Certificate from the Central Bank of UAE.
  • Fourthly, Commercial Registration is a crucial step. They need to provide a copy of the commercial registration attached to it.
  • Tenancy Agreement is also important. They need to submit a copy of the tenancy agreement for the business premises. It is about where HAWALA activities are conducted and held.
  • Both the documents including Memorandum of Association and Articles of Association are needed. It provides notarized copies of these documents to the relevant authorities.
  • Details of the contacts are also required. The contact details may include the contact numbers of the manager in charge and the main office.
  • Besides, they also require the Passport and ID Copies. They should submit passport and ID card copies to the Registered HAWALA Provider. However, it is also applicable for registration renewal in the coming years.
  • A personal Photograph should be attached. A colored and recent personal photograph of the Registered HAWALA Provider.
  • The Police Clearance Certificate is also needed. The certification includes a police clearance certificate which is essential for the Registered HAWALA Provider.
  • The Business Introduction Form is attached which contains the complete details about the business introduction.
  • The Information Form is also needed that contains the information form provided by the Central Bank of UAE.
  • There is a need to attach an undertaking for a Bank Account. It is submitted with an undertaking to open a bank account. it is the bank account through which all transactions will be settled. It also contains the details of the Central Bank account.
  • Additionally, it requires an undertaking for a License Amendment. This provides an undertaking to amend the license. It is issued by relevant economic regulators that reflect all Hawala-related activities.
  • HAWALA Registration Services are available in UAE the law firms in the UAE provide efficient HAWALA registration services to clients. Besides, they have a dedicated team of experienced lawyers and legal consultants. They are familiar with the HAWALA registration Regulations.
  • They fully understand the importance of meeting strict deadlines and addressing the clients’ registration specifications.  The lawyers and legal advisors navigate the clients through the complex regulatory landscape of the region.
  • Provided Information can be OLD, Not in Use, or Law has also been reformed. Therefore there is no guarantee taken. Kindly consult the top Emirati Lawyers in UAE e.g. ASK THE LAW AL SHAIBA ADVOCATES. Such Law Firms and Lawyers will provide you the best services and latest details.

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