In the latest to the Finablr fiasco, the Central Bank of UAE (CBUAE) will be taking over the operations of UAE Exchange, which was founded by embattled UAE millionaire BR Shetty.
In a statement, released on its website, CBUAE said that it would be overseeing the operations management of UAE Exchange, pursuant to its supervisory mandate stipulated in the Decretal Federal Law No. 14 of 2018.
While all new transactions through all of its branches have been stopped, its Wage Protection System has been allowed to operate until further notice.
“In order to protect consumers, the Central Bank of UAE has required the exchange house to swiftly settle outstanding remittances and all other already initiated transactions. The Central Bank of UAE inspection team has started an examination on the UAE Exchange L.L.C. today, in order to verify its compliance with the applicable laws and regulations. The Central Bank of UAE will take additional action, if necessary, once the examination is completed,” the bank said.
UAE Exchange operates 150 branches across the country. It had earlier received complaints about delayed fund transfers, with some customers complaining that the money they remitted from UAE did not reflect on the recipients’ accounts for days.
Finablr, also a BR Shetty company, had its trading suspended on the London Stock Exchange with the CEO, Promoth Manghat, stepping down. The London-listed payments and foreign exchange firm had also warned of potential insolvency this week.
Yesterday, MIC Capital Partners – owned and managed by Mubadala Capital, a unit of Mubadala Investment Co – acquired a 3.4 per cent stake in the company.
Finablr, founded by disgraced UAE-based billionaire BR Shetty, has been battling problems with its Travelex business, first because of a ransomware attack last year and now with the coronavirus crisis. Its sister concern NMC Health, also founded by Shetty, is already in deep financial crisis after being brought to task by American short-seller Muddy Waters.
