F. Appendices
Appendix 1: Definitions
- 1.“the Central Bank” means the Central Bank of the United Arab Emirates.
- 2.“the Banking Supervision Department (the BSD)” means the Banking Supervision Department at the Central Bank of the UAE.
- 3.“the FID” means the Financial Intelligence Department at the Central Bank of the UAE (formerly known as the Anti-Money Laundering and Suspicious Cases Unit or the AMLSCU). It is the Financial Intelligence Unit (FIU) of the UAE and the sole national centre for receiving, analyzing and disseminating suspicious transaction reports (STRs) filed by banks, exchange houses, other financial institutions and designated non-financial businesses and professions (DNFBPs) as per the Federal Law No. (9) of 2014 regarding the amendment of some Provisions of the Federal Law No. (4) of 2002 regarding Criminalization of Money Laundering and its Executive By-Law No. (38) of 2014.
- 4.“the Licensed Person” means any natural or juridical person authorized to conduct Exchange Business under the Regulations.
- 5.“License” means license issued by the Central Bank for the carrying out Exchange Business.
- 6.“Exchange Business”; shall mean:
- i.Dealing in sale and purchase of foreign currencies and travelers cheques;
- ii.Executing remittance operations in local and foreign currencies;
- iii.Payment of wages through establishing a link to the operating system of “wages protection” (WPS); and
- iv.Other business licensed by the Central Bank.
- 7.“Paid-Up Capital” means the cash paid by the Owner, Partners or Shareholders of a Licensed Person into the account of the entity, as per requirements of the Regulations.
- 8.“Licensed Premises” means the premises where the Licensed Person is permitted by the Central Bank to carry out Exchange Business.
- 9.“Instant money transfer service provider” means a money remitting institution licensed and regulated by an appropriate Regulator in its home country who will have necessary proprietary software applications and infrastructure to transfer funds instantly from an agent in one country to an agent in another country and/or domestically.
- 10.“Designated Remittance Intermediate Account” shall mean an account with a Bank licensed by the Central Bank of the UAE where the customers’ remittance funds are deposited temporarily prior to the execution of remittances to the foreign correspondents or remittance partners.
- 11.“ML/FT” means the Money Laundering or Terrorist Financing as defined in the Federal Law No (9) of 2014 regarding the amendment of some Provisions of the Federal Law number (4) of 2002 regarding Criminalization of Money Laundering.
- 12.“AML/CFT Program (Anti Money Laundering and Combating Financing of Terrorism Program)” means the Policies, Procedures, Systems, Controls, etc. introduced to prevent Money Laundering and Financing of Terrorism.
- 13.“Ultimate Beneficial Owner or the UBO” means the ‘Natural Person’ who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a juridical person. A Natural Person who owns 5% or above of the juridical person is treated as an UBO. Also be guided by the FATF paper on Transparency and Beneficial Ownership (October 2014) regarding effective control and related matters.
- 14.“Foreign Politically Exposed Person (FPEP)” means an individual who is or was previously entrusted with a prominent public function by a foreign country such as heads of state or government, senior politicians, senior government officials and judicial or military officials, senior executives of state owned corporations, senior officials of political parties, Head of an International Organization (HIO), and such individual’s family members or close associates.
- 15.“Head of an International Organization (HIO)” means individuals who are or were previously entrusted with a prominent function by an international organization such as members of senior management or individuals entrusted with equivalent functions (i.e. directors, deputy directors, members of the board or equivalent functions) and such individual’s family members and close associates.
- 16.“Source of funds” means how the money, involved in the transaction, was originally derived or earned. Examples of source of funds are: salary, wages, inheritance, gratuity, end of service benefits, bank loan, income from businesses, sale of property, sale of land, sale of investments, etc. For verification of the source of funds, documents include but are not limited to salary slip, labor contract, court order, bank statements, etc.
- 17.“Purpose of transaction” means an explanation about why a customer is conducting a transaction or the reason for which the funds will be used. Examples of purpose of transaction are: family support, education, medical, tourism, debt settlement, financial investment, direct investment, or trading etc. For verification of the purpose of transaction, documents may include any documentation proving the purpose for which the money will be used.
Appendix 2: List of Laws, Regulations and Notices
- 1.The provisions of Union Law No. (10) of 1980 concerning the Central Bank, the monetary system and the organization of banking and its amendments.
- 2.Resolution No. 31/2/1986 issued on 16/7/1986 regarding organization of the foreign exchange profession in the UAE.
- 3.Regulations regarding Licensing and Monitoring of Exchange Business issued on 6th January 2014.
- 4.Amendments to Regulations regarding Licensing and Monitoring of Exchange Business by virtue of Notice No 269/2016 dated 25th August 2016.
- 5.Federal Law number 4 of 2002 regarding Criminalization of Money Laundering.
- 6.Federal Law Number 9 of 2014 regarding amendment of some provisions in Federal Law number 4 of 2002.
- 7.Decree Number 38 of 2014 regarding the Executive By Law of the Federal Law number 4 of 2002.
- 8.Notice No. 24/2000 issued on 14th November 2000 and its subsequent amendments.
- 9.Notice No. 1401/2010 issued on 16th March 2010.
- 10.Rules of the Wage Protection System issued by the Central Bank.
- 11.Notice No. 249/2016 issued on 3rd August 2016.
- 12.Notice No. 171/2017 issued on 12th June 2016.
- 13.Any other Notices, Circular or Regulations issued hereafter by the Central Bank of the UAE regarding Exchange Business.
Appendix 3: List of Compulsory Reports and Forms
Prudential reporting and submission deadlines
The Licensed Person must submit the following returns/reports to the Central Bank within the deadlines mentioned hereunder:
Notes:
- 1.“Annual return/report” means a return/report for the period from 1st January to 31st December of each financial year;
- 2.“Bi-Annual returns/reports” are returns/reports for the six (6) months period ending on 30th June and 31st December of each financial year;
- 3.“Quarterly returns/reports” are returns/reports for the three (3) months period ending on 31st March, 30th June, 30th September and 31st December of each financial year;
- 4.In the case of a startup business, the starting date of a return/report will be the actual date of commencement of business in all above cases;
- 5.The Central Bank reserves the right to alter the format or add/remove the information required in any return/report or introduce additional return(s)/report(s) or discontinue existing return(s)/report(s) at any point in time;
- 6.Form 1 to Form 17 (i.e. items from 4 to 20 of the above table) must be submitted to the Banking Supervision Department via email info.ehs@cbuae.gov.ae only;
- 7.Bi-Annual Compliance Report from the Compliance Officer (i.e. item 21 of the above table) must be submitted to the Banking Supervision Department via email mfo.ehs@cbuae.gov.ae in addition to submitting a hard copy to the FID; and
- 8.Auditors’ Report, Financial Statements, Management Letter and External Auditor’s findings based on the Agreed-Upon Procedures on AML/CFT Compliance function (i.e. items 22 and 23 of the above table) must be submitted to the Banking Supervision Department via email info.ehs@cbuae.gov.ae in addition to submitting the hard copies.
Appendix 4: Supervisory Powers and Non-Compliance Charges
A.Supervisory Powers and Enforcement Actions
The Central Bank shall impose the following administrative sanctions on a Licensed Person who continues its operations in breach of various provisions/requirements of applicable Laws, Rules, Regulations, Notices and the Standards:
- a)Issuance of warning letter;
- b)Decline approvals of any kind;
- c)Restrict the growth of the business by declining new branch or new product approvals;
- d)Restrict the validity of the renewed license for a period less than one (1) year;
- e)Decline to renew license(s);
- f)Temporarily or permanently suspend one or more of the licensed activities such as remittance activity, WPS, banknotes export/import, etc.;
- g)Limit the powers of the Board of Directors, Management or Managers or Owners including the appointment of a temporary observer;
- h)Administrative sanctions including levying non-compliance charges (i.e. financial penalties or fines) as per Article 11.3 (b) of Federal Law No. (9) of 2014 regarding the amendment of some provisions in Federal Law Number (4) of 2002;
- i)Temporary suspension of the license;
- j)Revoke the license to carry out Exchange Business; and
- k)Prohibit the concerned violating parties from working in the Exchange Business sector for a period to be defined by the Central Bank.
B.Non-Compliance Charges
The Central Bank shall impose non-compliance charges or fines, in accordance with Article 11.3 (b) of Federal Law No. (9) of 2014, on a Licensed Person when, based on the available facts and information, it is satisfied that the Licensed Person has failed to comply with the provisions of the Federal Law No. (9) of 2014, the Cabinet Resolution No. 38 of 2014 regarding the Executive Bylaws of Federal Law No. 4 of 2002, the Central Bank Regulation Concerning Procedures for AntiMoney Laundering (Ref No. 24/2000 issued on 14th November 2000, i.e. “the AML/CFT Regulations”) and its Addendum (Notice No. 2922/2008 issued on 17th June 2008, i.e. “the Addendum”) and any other amendments thereto. Such non-compliance charges are imposed in addition to the sanctions/penalties stated in Article (13), Article (14), Article (15) or Article (16) of Federal Law No. (9) of 2014. The non-compliance charges are stated in the below table:
The Licensed Person must note that the non-compliance charges or fines stated above shall be levied for each non-compliant item separately and therefore, the cumulative of such noncompliance charges for multiple violations by a Licensed Person may exceed AED 500,000.
The Central Bank shall impose other administrative sanctions on a Licensed Person for failing to comply with any provision of applicable Laws, Rules, Regulations, Notices and the Standards. Such administrative sanctions including non-compliance charges shall be determined in accordance with the prevailing Laws and Regulations and shall be published as and when it becomes available under a formal Notice from the Central Bank.
C.Imposing Administrative Sanctions and Right to Make Representation
- 1.Before imposing an administrative sanction, the Central Bank shall give the Licensed Person a written notice:
- a)of the nature of the alleged non-compliance;
- b)of the intention to impose an administrative sanction and the amount;
- c)particulars of the intended administrative sanction; and
- d)that the Licensed Person may, within a period specified in the notice, make representations in writing to the “Assistant Governor for Banking Supervision” as to why the administrative sanction should not be imposed.
- 2.After considering the representation from the Licensed Person, if any, the Central Bank shall inform the Licensed Person in writing about its final decision to impose an appropriate administrative sanction.
- 3.The Central Bank further reserves the right to impose non-compliance charges which are higher than those published in the above table. In cases where it may be required to determine such higher non-compliance charges which, in accordance with AML/CFT Laws and Regulations shall not be less than AED 50,000 and shall not exceed AED 500,000, the Central Bank will consider the following factors:
- a)the nature, duration, seriousness and extent of the relevant non-compliance;
- b)license category and type of business activities;
- c)the risk grading of the Licensed Person awarded by the Central Bank;
- d)whether the Licensed Person has previously failed to comply with such requirements; and
- e)the effectiveness of the remedial measures taken by the Licensed Person to prevent a recurrence of such non-compliance.
Appendix 5 - Forms and Templates
Details of Forms and Page Numbers
No. Form Name Purpose of the Form Page Number(s) 1 FAA Form To open Hedge accounts or Account/Relationship for remittance with a Foreign Bank, Financial Institution and IMTS provider 125 2 CRV Form To enable the Central Bank to compute the minimum required Bank Guarantee 126 3 FIR Form To report Fraud Incidents 127 4 CIR Form To report Counterfeit Currency Incidents 128 5 LPA Form To apply for a new license, change of license category or change of shareholding/ownership structure 129 - 143 6 APA Form To request for a Letter of No Objection to appoint Manager in Charge, Compliance Officer or Alternate Compliance Officer 144 - 154 Foreign Account Application (FAA Form) to the Banking Supervision Department **
Details of the Applicant 1 Name of the Exchange House 2 Name & details of the contact person of the Exchange House, if further information is required Name: ……………………………………………………..
Phone:…………………… Mobile: ………………………
Email: ……………………………………………………..Details of Foreign Banks/Financial Institutions/IMTS Providers *** No. Full Legal Name Address Name & Contact Details of the Regulator Purpose (whether for Remittance, IMTS or for Hedging)
1
2
3
4
5Declaration by the Authorized Signatory We hereby confirm that we have conducted Enhanced Due Diligence on above Foreign Banks/Financial Institutions/IMTS Providers in accordance with Paragraph 16.11.8 of Chapter 16 of the Standards. Draft agreements are attached with this form. I/We hereby confirm that, to the best of my/our knowledge and belief, all information furnished to the Central Bank of the UAE with regard to this application for the above stated purpose(s) is true and correct.
Name & Signature of Authorized Signatory
Date & Company Stamp**Email the duly filled in FAA Form & Relationship Details Spreadsheet (Refer to Notice 171/2017 dated 12th June 2017 issued by the Central Bank) to info.ehs@cbuae.gov.ae along with a letter signed by the Authorised Signatory of the Exchange House seeking the approval for the above relationships and the draft of the agreements.
*** Provide the details in a separate FAA Form in case the number of relationships exceeds 5.
Certificate of Remittance Value (CRV Form) to the Banking Supervision Department **
(To be submitted within two (2) months from the end of every financial year)Date:
To
The Chief Manager,
Licensing Division, Banking Supervision Department,
Central Bank of the UAE, Abu Dhabi, UAE.Dear Sir
Sub: Certificate of Remittance Value
We hereby certify the following information after verifying the books of accounts of ……………………………………………..… (Name of the Exchange House) for the financial year ended on 31st December ………………..
Total Remittance Turnover*** in AED for the financial year Average monthly Remittance Turnover in AED for the financial year 5% of the average monthly Remittance Turnover in AED for the financial year Total value in AED of the existing Bank Guarantee currently given to the Central Bank Additional Bank Guarantee required in AED to be given as per Paragraph 2.4.1 of the Standards, if required
Yours Faithfully,
(Name and Signature of External Auditors) (Name and Signature of the Licensed Person) **Email the duly filled in CRV Form to info.ehs@cbuae.gov.ae and then submit the original to the BSD.
*** Remittance Turnover means the total value of inward and outward remittances. Domestic remittances, where the origin and destination of remittances are within the UAE, are excluded.
Fraud Incident Reporting (FIR Form) to the Banking Supervision Department**
Details of the Place & Date of Fraud Incident 1 Name of the Exchange House 2 Name & details of the contact person of the Exchange House, if further information is required Name: ……………………………………………………..
Phone:…………………… Mobile: ………………………
Email: ……………………………………………………..3 Name & address of the branch where the incident happened 4 Date & time of incident Details of the Fraud Incident & Amount 1 Amount in AED 2 Nature & mode of operation of the incident 3 How was the incident discovered & by Whom? Details of the Perpetrator *** 1 Name of the perpetrator 2 Nationality: …………………... ID Type: …………………. ID Number: ……………….. 3 Residential Status UAE Resident - UAE Non-Resident - 4 Contact details of the perpetrator, if available Address:
Phone:
Mobile:5 - a)Was your employee connected with this incident?
Yes - No -
- b)Has the incident been reported to the Police?
Yes - No -
- c)Do you have any insurance against such losses?
Yes - No -
6 If answer to question 5 (a) is YES, then provide employee’s details. Name of the employee: …………………...........................
Nationality: ………………….............................................
ID Type: …………………ID Number: ……………….....Actions Taken by the Exchange House 1
State actions taken by the Exchange House
Name & Signature of Authorized Signatory
Date & Company Stamp** Email the duly filled in FIR Form to info.ehs@cbuae.gov.ae and then submit the original to the BSD.
*** Provide the details in a separate page in case more than one individual involved in the incident.
Counterfeit Incident Reporting (CIR Form) to the Banking Supervision Department**
Details of the Place & Date of Counterfeit Incident 1 Name of the Exchange House 2 Name & details of the contact person of the Exchange House, if further information is required Name: ……………………………………………………..
Phone:…………………… Mobile: ………………………
Email: ……………………………………………………..3 Name & address of the branch where the incident happened 4 Date & time of incident Details of Counterfeit Notes & Amount Involved 1 Currency Type a) AED - Amount ………………………
b) Foreign Currency - Currency name ………….. Amount ……………..2 Denomination Details of the Individual who Produced Counterfeit Notes*** 1 Name of the Individual 2 Nationality: …………………... ID Type: …………………. ID Number: ……………….. 3 Residential Status UAE Resident - UAE Non-Resident - 4 Contact details of the Individual, if available Address:
Phone:
Mobile:5 - a)Does the Individual have any information as to the source of Counterfeit?
Yes - No -
- b)Was your employee connected with this incident?
Yes - No -
- c)Do you have any insurance against such losses?
Yes - No -
6 If answer to question 5 (a) is YES, then provide full details. 7 If answer to question 5 (b) is YES, then provide employee’s details. Name of the employee: …………………...........................
Nationality: ………………….............................................
ID Type: …………………ID Number: ……………….....Actions Taken by the Exchange House 1 State actions taken by the Exchange House
Name & Signature of Authorized Signatory
Date & Company Stamp** Email the duly filled in CIR Form to info.ehs@cbuae.gov.ae and then submit the original to the BSD.
*** Provide the details in a separate page in case more than one individual involved in the incident.
EXCHANGE BUSINESS
LICENSED PERSON’S
APPLICATION FORM
(LPA FORM)APPLICATION TYPE New License
Change License Category
Change Capital/Shareholding StructureNAME OF APPLICANT
LICENSE CATEGORY
REQUESTEDCategory A
Category B
Category CCONTACT DETAILS Name:
__________________________
Title/Capacity:
__________________________
Tel:
__________________________
Fax:
__________________________
E-mail:DATE OF SUBMITTING THE FORM
Please return completed form, together with supporting documentation to Licensing Division, Banking Supervision Department, Central Bank of the U.A.E.
Table of Contents
SECTION
CONTENTS PAGE NO.
1.
GUIDELINES 131
2.
LICENSING PROCESS 132
3.
APPLICANT’S DETAILS 133
4.
SHAREHOLDERS/ OWNERS/ PARTNERS 136
5.
BOARD OF DIRECTORS 138
6.
AUTHORIZED PERSONS 139
7.
REQUIRED DOCUMENTS 140
8.
DECLARATION 143
Section 1: GUIDELINES
- 1.Any person may submit to the Central Bank an application for a new license, change license category or change in capital or shareholding structure of license. However, any material changes or proposed changes to the information provided in support of an application must be immediately reported to the Central Bank.
- 2.An applicant may appoint a representative to prepare and submit the application. However, the applicant retains full responsibility for the accuracy and completeness of the application. The Central Bank also expects to be able to liaise directly with the applicant during the assessment process, when seeking clarification of any issues.
- 3.All documentation provided to the Central Bank must be in either Arabic or English. Any documentation in a language other than Arabic or English must be accompanied by Arabic or English translation. Moreover, all figures submitted must be in either AED or USD.
- 4.Complete all sections as fully as possible, attaching supporting documents and continuation sheets where required.
- 5.The Central Bank may require the applicant to amend aspects of their services/activities in order to comply with the licensing requirements.
- 6.The applicant may withdraw its application at any time during the process by notifying the Central Bank.
- 7.Failure to provide all required information may result in significant delays in processing the application. The Central Bank does not accept responsibility for any loss caused to the applicant by any such delay.
- 8.If any question is not applicable in a particular circumstance, please clearly indicate by marking ‘N/A’, with an explanation as to why it does not apply.
- 9.Applicants are reminded that no person may undertake an Exchange Business within or from the United Arab Emirates unless licensed by the Central Bank.
- 10.Please return completed form, together with supporting documentation to:
Licensing Division - Banking Supervision Department
Central Bank of the U.A.E.Section 2: LICENSING PROCESS
- 1.All potential new applicants are encouraged to contact the Central Bank at an early stage to discuss their plans and requirements. The Licensing Division at the Central Bank would expect to hold at least one pre-application meeting with the applicant, prior to receiving an application.
- 2.Applicants must submit a formal application letter signed by an authorized signatory, including the request and reasons for applying.
- 3.Applicants seeking new license must submit the following duly completed Forms, along with the related supporting documents:
- a)Licensed Person’s Application Form (LPA FORM)
- b)Authorised Person’s Appointment Form (APA FORM)
- 4.Applicants seeking new license must submit all required documents as listed in ‘Section 7: REQUIRED DOCUMENTS’ of this Form.
- 5.The Central Bank shall notify the applicant of the outcome of the application, which the Central Bank considers to be complete. The Central Bank will review the applications and accordingly advise the applicant in writing when it has:
- a)Approve the applicant’s request without conditions;
- b)Approve the applicant’s request subject to conditions specified by the Central Bank; or
- c)Reject the applicant’s request.
- 6.Queries may be addressed to:
Licensing Division
Banking Supervision Department
Central Bank of the U.A.E.Section 3: APPLICANT’S DETAILS
Please submit all information requested below. You can use a continuation sheet if necessary. If the question is not applicable, please clearly indicate by marking ‘N/A’.
- 1.Name of the applicant (Please provide the current and proposed, in case of change in the applicant’s name)
- 2.Legal form (Please provide the current and proposed, in case of change in the legal form)
- 3.Authorised and paid-up capital (Please provide the current and proposed, in case of change in the authorised and paid-up capital)
- 4.Origin of the capital source(s), with the related bank documents as proof
- 5.License category (Please provide the current and proposed, in case of change in the legal form)
- 6.Reasons for applying at the Central Bank
- 7.The external auditor (existing or to be appointed - specify which)
Section 3: APPLICANT’S DETAILS (Continue)
- 8.The organization structure with the reporting lines to be included. Please describe, and provide further details in the business plan. (For applications for new license or in case of change in the organization structure of a Licensed Person).
- 9.Outline the framework of the company’s risk management and monitoring system with respect to the major potential risks. Please provide further details in the business plan. (For applications for new license)
- 10.Supply details of any expansion plans (branches or subsidiaries inside or outside the UAE), and anticipated manpower/staffing requirements in the next three (3) years, reflecting the Emiratisation requirements (For applications for new license)
- 11.Other ancillary activities. Please describe, and provide further details in the business plan. (For applications for new license)
- 12.Details of any entity licensed or authorized within the group by a regulatory/supervisory authority (For applications for new license or change in capital or shareholding structure)
No. Entity Name License/
Authorization TypeRegulatory/
Supervisory NameRegulatory/
Supervisory Contact
Details1. 2. 3. 4. Section 3: APPLICANT’S DETAILS (Continue)
- 13.Has the applicant or member(s) of its group been the subject of any litigation or convicted in a Court of Law (or known circumstances which might give rise to litigation) over the past five (5) years, or is any litigation currently outstanding? If yes, please provide details
- 14.Are there any restrictions imposed on the operations of the applicant or member(s) of its group by any regulatory authorities? If yes, please provide details
- 15.Has the applicant had any of its previous applications in other countries rejected? If yes, please provide details (name of the Regulator, date of rejecting the application, reasons for the rejection)
Section 4: SHAREHOLDERS/ OWNERS/ PARTNERS
- 1.Please list all particulars required below (including previous names used) of all proposed shareholders, owners or partners. If space is insufficient, please provide on separate sheet of paper.
No. Name Nationality/
Country of IncorporationAmount
in AEDPercentage of
Shareholding1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Total
Section 4: SHAREHOLDERS/ OWNERS/ PARTNERS (Continue)
- 2.Please list all particulars required below (including previous names used) of all existing shareholders, owners or partners (if applicable). If space is insufficient, please provide on separate sheet of paper.
No. Name Nationality/
Country of IncorporationAmount
in AEDPercentage of
Shareholding1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Total
Section 5: BOARD OF DIRECTORS
- 1.Please complete the table below for all proposed members of the Board of Directors (if applicable). For “Other Responsibilities”, please list all positions held as board of director or senior manager in any other institutions or company.
No. Name Nationality Other Responsibilities Position Company/
Institution1. 2. 3. 4. 5. - 2.Please complete the table below for all existing members of the Board of Directors (if applicable). For “Other Responsibilities”, please list all positions held as board of director or senior manager in any other institutions or company.
No. Name Nationality Other Responsibilities Position Company/
Institution1. 2. 3. 4. 5. Section 6: AUTHORIZED PERSONS
- 1.Please list all particulars required below (including previous names used) of all current and/or proposed Authorized Persons. Also, include completed Authorized Person Appointment Form (APA Form) along with the supporting documents for each proposed name provided.
No. Position Name APA Form
Attached
(Yes/No)Current Proposed
(if applicable)1. Manager in Charge 2. Compliance Officer 3. Alternate Compliance Officer - 2.Please list all current and/or proposed Functions Heads below (including previous names used). If space is insufficient, please provide on separate sheet of paper.
No. Position Name Current Proposed
(if applicable)
1.
2.
3.
Section 7: REQUIRED DOCUMENTS
Please select the documents submitted with this form. If the required document is not applicable, please clearly indicate by marking ‘N/A’.
- ⬜A formal application letter signed by authorized signatory, including the request and reasons for applying.
- ⬜A certified copy of the Board resolution of the applicant, confirming its decision to seek a license/ change license category (if applicable).
- ⬜Copy of the commercial registration, where the applicant is an existing company.
- ⬜APA Forms for person wishing to undertake an authorized function.
- ⬜Business plan including short history of the applicant and its shareholders, the reasons for applying and market objectives, a description of the group and organizational structure, a brief summary of its key business lines, its mind and management, financial projections and all related assumptions covering at least the first three (3) years of operations, an assessment of potential risks and their mitigations, board and senior management, and any functions to be outsourced.
- ⬜Details of the applicant’s group structure.
- ⬜Copies of the audited financial statements of the applicant’s major shareholders (for corporates only) for the three (3) years preceding the application.
- ⬜A copy of the applicant’s memorandum and articles of association in draft form.
- ⬜A letter of non-objection to the applicant from the applicant’s lead supervisor (in the case of applicants that are part of a regulated group), and confirmation that it is in good regulatory standing and in compliance with applicable supervisory requirements.
- ⬜A copy of the certificate of license issued by the regulatory authority (In the case of applicants that are part of a regulated group).
- ⬜A capital deposit certificate from a licensed bank by Central Bank.
- ⬜The applicant’s location address and details of premises to be used to carry out the business.
- ⬜A copy of the required approvals from the Ministry of Economy and Department of Economic Development.
Section 7: REQUIRED DOCUMENTS (Continue)
- ⬜Undertaking from the Shareholders to comply with the provisions of the Union Law No. (10) of 1980 concerning the Central Bank, the monetary system and organization of banking, and the decision of the Board of the Central Bank concerning the licensing and regulation of the exchange business in the country, as amended, and any other decisions or instructions or directives or circulars or correspondence issued by the Central Bank, as well as subjecting the institution / company records and documents to the Central Bank supervision and audit.
- ⬜An undertaking from the Shareholders to provide, in case the application is approved, a bank guarantee drawn in favor of the Central Bank issued by a bank licensed in the UAE.
- ⬜A certification / acknowledgment that the Shareholders are not bankrupt, issued and certified based on the applicable laws of the concerned authorities in the country (the courts).
- ⬜Bank statement of the Shareholders for a period of one (1) year from all banks that they are dealing with in the country.
- ⬜Written acknowledgment provided by the Shareholders confirming that they have never causes any financial losses bared by banks or other financial institutions operating in the UAE from any financial facility obtained from these banks or financial institutions.
- ⬜Written acknowledgment provided by the Shareholders that his/their contribution in the company is actual and not hypocritical for the benefit of any other party as an exchange for a commission.
- ⬜Bank reference of the Shareholders to be provided to the Central Bank from each bank they are dealing with during the past seven (7) years. The bank reference should include a paragraph about the cheques and whether the Shareholders have issued cheques that were bounced due to insufficient funds in their accounts during that specified period.
- ⬜Undertaking from the Shareholders that the company is committed to fulfill any obligations that may arise to third parties and any operations the company will undertake in the future.
- ⬜Undertaking from the Shareholders not to be committed to contracts that leads to financial obligations, prior to receiving the in-principal approval from the Central Bank to carry out Exchange Business.
Section 7: REQUIRED DOCUMENTS (Continue)
- ⬜Undertaking from the Shareholders that if it was proven to the Central Bank that the license granted has been rented/ leased for a commission, the Central Bank has the right to cancel the license without referencing back to them.
- ⬜Undertaking from the Shareholders confirming that the company will:
- •Not manage clients’ money in or outside the UAE, or open marginal accounts to their clients.
- •Not rent this license, or any other license provided by the Central Bank, when granted to them in the future.
- •Execute all exchange business activities based on receipts, advertise to customers clearly about currency rates, and keep copies of all receipts and correspondence regularly in accounting records.
- •Not bail foreign financial facilities, nor act as a local agent to them.
- •Not represent foreign financial facilities.
- •Not sign contracts with foreign financial facilities for the management of the company.
- ⬜Undertaking from the Shareholders that they will be in contact with the Central Bank, and will inform the Central Bank of any changes in address or place of residence or change in their management positions. They should also record the minutes of their meetings and provide the Central Bank with a copy of them.
- ⬜Undertaking from the Shareholders that they are aware about all applicable Laws, Rules, Regulations, Notices and the Standards issued by the Central Bank regarding the exchange business and antimoney laundering on an ongoing basis, and the company will be keeping a copy of these laws and regulations in special files, where they will be held accountable for any failure in compliance with this requirement.
Section 8: DECLARATION
We declare that the information submitted for this Form is complete and accurate to the best of our knowledge and that there are no other facts relevant to this Form that the Central Bank should be aware of.
We understand that providing any information to the Central Bank that is false or misleading in connection with this Form may result in the refusal of the application or, if discovered later, the subsequent cancellation of any approvals provided. We shall also inform the Central Bank of any material changes to the Form that may arise during the application.
We authorize the Central Bank to make such enquiries and seek further information it deems necessary in considering this application.
No.
Name Signature Date
1.
2.
In case of application for new license, the above declaration must be signed by at least two major Shareholders. Should any shareholder is corporate, the declaration must be signed by two Directors of the Board, Owner, two major Partners, or two major Shareholders and bear the corporate seal.
In case of application for existing Licensed Persons, the above declaration must be signed by at least two Directors of the Board. In the absence of the Board of Directors, the above declaration must be signed by the Owner, two major Partners, or two major Shareholders.
EXCHANGE BUSINESS
AUTHORISED PERSON’S
APPOINTMENT FORM
(APA FORM)NAME OF CANDIDATE FOR A UTHORISED PERSON
NAME OF LICENSED PERSON
LICENSE CATEGORY Category A
Category B
Category CCONTACT DETAILS
Name:
__________________________
Title/Capacity:
__________________________
Tel:
__________________________
Fax:
__________________________
E-mail:DATE OF SUBMITTING THE FORM
Please return completed form together with supporting documentation to Supervision & Examination Division, Banking Supervision Department, Central Bank of the U.A.E.
Table of Contents
SECTION
CONTENTS PAGE NO.
1.
GUIDELINES 146
2.
AUTHORISATION PROCESS 147
3.
CANDIDATE’S DETAILS 148
4.
FUNCTION DETAILS 150
5.
ELECTRONIC APPOINTMENT APPLICATION FORM 151
6.
INTRODUCTORY STATEMENT FORM 151
7.
REQUIRED DOCUMENTS 152
8.
DECLARATION 154 Section 1: GUIDELINES
- 1.All Licensed Persons must submit a formal request letter and complete this Form for submission to the Central Bank prior to appointing any person who will be in charge of an Authorised Function (i.e. Manager in Charge, Compliance Officer or Alternate Compliance Officer). However, any material changes or proposed changes to the information provided in this Form must immediately be reported to the Central Bank.
- 2.The Licensed Person retains full responsibility for the accuracy and completeness of the application. The Central Bank also expects to be able to liaise directly with the Licensed Person or Candidate during the assessment process, when seeking clarification of any issues.
- 3.All documentation provided to the Central Bank must be in either Arabic or English. Any documentation in a language other than Arabic or English must be accompanied by a certified Arabic or English translation.
- 4.All sections must be fully completed as possible, attaching supporting documents and continuation sheets where required.
- 5.The Licensed Person may withdraw its application at any time during the process by notifying the Central Bank.
- 6.Failure to provide all required information may result in significant delays in processing the application. The Central Bank does not accept responsibility for any loss, caused to the Licensed Person or to the candidate, as a result of such delay.
- 7.If any question is not applicable in a particular circumstance, please clearly indicate by marking ‘N/A’, with an explanation as to why it does not apply.
- 8.Licensed Persons are reminded that providing any information which is false or misleading may result in cancellation of the application or imposition of other disciplinary measures.
- 9.Please return completed form, together with supporting documentation to:
Supervision & Examination Division
Banking Supervision Department
Central Bank of the U.A.E.
Section 2: AUTHORISATION PROCESS
- 1.Licensed Persons must ensure that they meet the minimum requirements before submitting an application, including, where applicable, the minimum qualifications and competency requirements of the requested position.
- 2.Licensed Persons must submit a formal application letter signed by an authorized signatory of the Licensed Person, highlighting the requested position along with this Form. The Licensed Person must submit any related information that may be important to the application, which was not covered in this Form. It must not be assumed that information is known to the Central Bank merely because it is in the public domain or has previously been disclosed to the Central Bank or another regulatory body. If there is any doubt about the relevance of information, it must be disclosed.
- 3.Licensed Persons must submit all required documents as listed in ‘Section 7: REQUIRED DOCUMENTS’ of this Form.
- 4.The Central Bank may require the Licensed Person to provide further information at any time after receiving this Form and before determining whether approval is to be granted or not.
- 5.A meeting with the candidate may be required prior to finalizing the outcome of the application.
- 6.The Central Bank shall notify the Licensed Person of the outcome of the application within sixty (60) days from the date of receiving the application, which the Central Bank considers complete. The Central Bank will review the applications and accordingly advise the Licensed Person in writing when it has:
- (a)Granted an approval without conditions;
- (b)Granted an approval subject to conditions specified by the Central Bank; or
- (c)Refused the application.
- 7.Queries may be addressed to Banking Supervision Department, Central Bank of the U.A.E via email:
Section 3: CANDIDATE’S DETAILS
Please submit all information requested below. You may use a continuation sheet if necessary. If the question is not applicable, please clearly mark as ‘N/A’.
- 1.Name of the candidate for the position of Authorized Person
First Name: Middle Name: Family Name: Alias: Gender: - 2.Has the candidate had any previous name (s) by which he (she) is known? If yes, please specify
- 3.Names of companies owned by the candidate or members of the candidate’s direct family where ownership is equal to or greater than 5%
Name of Company Country Nature of Business Ownership % Ownership Amount - 4.Details of any company where the candidate currently serves as a director, when the directorship started and the countries in which the company is registered
Date (from) Name of Company/Nature of Business Country Position
Section 3: CANDIDATE’S DETAILS (Continue)
- 5.Details of all academic and professional qualifications as well as the year and place where these were obtained (please enclose certified copies)
Academic/
Professional QualificationName of Institution Place of Institution Year Notes (e.g. membership no.) - 6.Details of employment over the past ten (10) years, including the full name and the employer, the nature of the business, the position held and the relevant datesaddress of of service
Date (from/to) Name of Employer Nature of Business Country Position
Section 4: FUNCTION DETAILS
- 1.Position for which the candidate is being nominated:
- 2.Responsibilities of the proposed position:
- 3.Draft copy of the candidate’s employment contract, stipulating all responsibilities and powers delegated to him/her, with a clause clarifying that any violation he/she commits would be criminal if it is proven that he has signed an incorrect or misleading document.
- 4.Organization Chart (showing the candidate upward and downwards reporting lines).
Section 5: ELECTRONIC APPOINTMENT APPLICATION FORM
Please submit the Excel worksheet of the Electronic Appointment Application Form along with the related documents in Arabic only as per Notice No. 249/2016 dated 3rd August 2016 to:
Email: obaid.romaithi@cbuae.gov.ae
Copy to: info.ehs@cbuae.gov.aeAlso, submit hard copies of the above-mentioned Excel worksheet along with the related documents to:
Supervision & Examination Division
Banking Supervision Department
Central Bank of the U.A.E.Queries regarding the Electronic Appointment Application Form may be addressed to the Banking Supervision Department, Central Bank of the UAE:
Mr. Obaid Al- Romaithi
Telephone: 02-6915240
Email: obaid.romaithi@cbuae.gov.ae
Copy to: info.ehs@cbuae.gov.ae
Section 6: INTRODUCTORY STATEMENT FORM
Please return the completed Introductory Statement form in either Arabic or English to:
Supervision & Examination Division
Banking Supervision Department
Central Bank of the U.A.E.
Section 7: REQUIRED DOCUMENTS
Please select the documents submitted with this form. If the required document is not applicable, please clearly indicate by marking ‘N/A’.
- ⬜A formal application letter signed by authorized signatory.
- ⬜A bank reference from one or more banks for the past seven (7) years, confirming that the candidate has had no cheques returned during this period.
- ⬜Certified copies of academic and professional qualifications.
- ⬜Organization Chart showing the candidate upward and downwards reporting line.
- ⬜Soft copy of the Excel worksheet of the Electronic Appointment Application Form with the related documents to be sent to obaid.romaithi@cbuae.gov.ae under copy to info.ehs@cbuae.gov.ae.
- ⬜Hard copy of the Excel worksheet of the Electronic Appointment Application Form with the related documents to Supervision & Examination Division, the Central Bank.
- ⬜Completed Introductory Statement form with the related documents to Supervision & Examination Division, the Central Bank.
- ⬜An undertaking from the candidate confirming that he/she has never inflicted or caused losses for or on behalf of any institution operating in the UAE (Applicable for Manager in Charge only).
- ⬜An undertaking from the candidate confirming that he/she is fully aware of the Laws, Rules, Regulations, Notices and the Standards related to the Exchange Business, and that he/she would be fully prepared to attend a personal interview with senior officials at the Central Bank.
- ⬜An undertaking letter from the candidate confirming that all educational documents provided to the Central Bank are duly attested by the competent authorities. Applications will be rejected if educational documents are not attested.
- ⬜Draft of the Power of Attorney that will be given to the candidate (Applicable for Manager in Charge only).
Section 7: REQUIRED DOCUMENTS (Continue)
- ⬜A copy of the draft employment agreement that contains all responsibilities/authorities delegated to the proposed Manager in Charge in detail. There must be a clause in the employment agreement stating that any violation (violation clause) on the part of proposed Manager in Charge will be considered a criminal violation and he/she will be subject to punishment if it is proved that what he/she has signed was incorrect or misleading. It also must include that he/she is responsible for the management of the Licensed Person and is authorized to sign on its behalf (Applicable for Manager in Charge only).
- ⬜An undertaking from the Owner/Partners/Shareholders of the Licensed Person that all its correspondence addressed to the Central Bank must be signed by person(s) authorized to sign on its behalf, along with the full name of such person(s) and the designation(s). Enclose copies of the official power of attorney issued to such person(s).
- ⬜An undertaking letter from the Owner/Partners/Shareholders of the Licensed Person to comply with Paragraphs 16.4.6, 16.4.7 and 16.4.8 of the Standards (Applicable for Compliance Officer only).
- ⬜An undertaking letter from the Owner/Partners/Shareholders of the Licensed Person to comply with Paragraphs 16.5.1 (a) to (g) of the Standards (Applicable for Alternate Compliance Officer only).
Section 8: DECLARATION
We declare that the information contained in and submitted along with this Form is complete and accurate to the best of our knowledge and that there are no other relevant facts that the Central Bank must be aware of.
We understand that providing any information to the Central Bank that is false or misleading may result in declining the application or, if discovered later, the subsequent cancellation of any approvals provided. We shall also inform the Central Bank of any material changes to pertinent information contained in the Form that may arise during the application process. We authorize the Central Bank to make such enquiries and seek further information it deems necessary whilst considering this application.
No.
Name Signature Date
1.
2.
The above declaration must be signed by at least two Directors of the Board. In the absence of the Board of Directors, the above declaration must be signed by the Owner, two major Partners, or two major Shareholders.
- a)Was your employee connected with this incident?
Appendix 6 Agreed-Upon Procedures (AUP) for Remittance Intermediate Account
An External Auditor must perform the following procedures, at a minimum, on the Remittance Intermediate Account and report their findings as required by Article 9 (n) and (o) of Notice 1/2014 issued by the Central Bank (i.e. Regulations Regarding Licensing and Monitoring of Exchange Business) and Paragraph 4.13 of Chapter 4 of the Standards.
- 1.Confirm that the Licensed Person maintains a “Designated Remittance Intermediate Account” with a Bank licensed by the Central Bank of the UAE;
- 2.Verify and confirm that the Licensed Person deposits the funds received from its remittance customers directly into the “Designated Remittance Intermediate Account” before the end of banking hours on the next business day;
- 3.Check whether the funds in the “Designated Remittance Intermediate Account” related to the remittance by customers are ‘ring-fenced’ against withdrawals for any purpose other than prefunding/settling the foreign correspondent accounts;
- 4.Obtain the General Ledger of the Remittance Intermediate Account for the relevant month;
- 5.Ensure that the relevant outward remittance transactions are recorded through the Remittance Intermediate Account in the General Ledger;
- 6.Check, on a sample basis (risk based), that the transactions from the Remittance Intermediate Account in the General Ledger are transferred to the respective ledger accounts of foreign correspondents as and when the remittance instructions are issued (i.e. upon payment order transmission) to the respective foreign correspondents;
- 7.Check, on a sample basis (risk based), that the foreign correspondent accounts are sufficiently funded before issuing the remittance instructions to the respective foreign correspondents or settlement is made whenever required in order to pay the beneficiary without any delay;
- 8.Obtain statements for the relevant month, on a sample basis (risk based), from foreign correspondents and from the bank where the “Designated Remittance Intermediate Account” is maintained. Ensure that the amount of local currency, balances in the Designated Remittance Intermediate Account and foreign banks is sufficient to cover the liabilities towards the remittance customers; and
- 9.The External Auditor and the Licensed Person must agree on additional procedures depending on the nature, size and complexity of the business of the Licensed Person.
G. Version Control Table
The Standards for Exchange Business in the UAE
Version No. Version Name Month and Year of
IssueDetails of Amendments 1.10 First
VersionFebruary 2018 Not applicable as this is the first version