Companies form group to resolve common problems

Money remittance companies in the UAE have come together as an industry group to address the common problems they are facing.

About 50 firms engaged in money exchange and remittance business have joined the Foreign Exchange and Remittance Group (FERG), which is registered with the Dubai Chamber of Commerce and Industry (DCCI). The group will address common problems and issues affecting the companies, which have come under the scrutiny of regulators and the UAE Central Bank due to recent global developments.

Said Leena Wilson, Co-ordinator of FERG, said: "FERG has been registered with DCCI. The main objective of the group is to have a strong and united forum and co-ordinate with regulatory and government authorities to equip our members to face the challenges ahead."

"About 50 exchange houses have already joined the group and we expect the remaining to do so, too. As per the Central Bank there are 105 money remittance and foreign exchange companies in the UAE," she said.

Wilson said the immediate issues affecting the exchange and remittance firms are the difficulties in implementing Emiritisation plans.

She said another issue is counterfeit notes and fraud prevention for which exchange houses have regular interaction with law-enforcement authorities. As part of anti-money laundering measures, exchange houses have to ensure that customers do not misuse the facility to remit money for illegal activities, including terrorism financing.

A common problem facing exchange firms is the five per cent Emiritisation target. "We do try to recruit Emirati staff, But many of them leave the job after a few months. So most exchange houses could not attain the five per cent Emiritisation target set by the Central Bank," said an industry source.

Sudhir Shetty, General Manager, UAE Exchange, said: "This group has been formed to create awareness and address issues such as money laundering and take proper steps for the industry. The group will discuss these issues often as and when such changes take place. Otherwise the industry will suffer."

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