The UAE Central Bank has shut operations of a money exchange house after receiving consumer complaint of irregularities, according to industry sources.
The Central Bank and Abu Dhabi Judicial Department are setting up a committee to investigate the matter, the sources said.
Though the full monetary value of what’s involved in the money exchange house is not yet known, customers who have lodged complaints with the Central Bank are believed to have sent amounts between AED1,000 and AED50,000 that have yet to be remitted.
S. Sanjeev, an Indian, remitted over AED2,000 ($545) for his child’s college fee to India on May 20 through Smart Exchange, which has six branches in the country.
“I sent the money to pay my child’s college fee, but it never reached India. As I was worried, I kept on visiting the Dubai branch near Burjuman, but the shutter were down,” said Sanjeev.
“There was a notice which read ‘exchange will open tomorrow at 11 am and is closed due to system error’. I kept calling the given phone number, but no one answered. I finally filed a complaint with the central bank on Tuesday.”
He said he advised a number of workers standing outside the branch, who had sent AED1,000 ($272) or less to India, to file complaint with the central bank.
Arabian Business called the number on the notice, but no one responded. Officials at UAE Central Bank could not be reached for comment.
(Image: Supplied)
Sources, however, confirmed that customers will get their money back, as each exchange house has to give a bank guarantee that ranges from AED3m ($817,439) and AED75m ($20.43 million) depending on the size of operation.
There are 65 money exchange houses in the country, according to information available on the Central Bank website. It also states that the national shareholding should not be less that 60 percent of the total paid-up capital in the company.
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