KHALEEJ TIMES, Monday, Sep 28, 2020 | Safar 11, 1442
Over 300K people, 10K SMEs benefit from UAE central bank stimulus
Emirates:
More than 300,000 individuals in the UAE have benefited from the central
bank's Dh256 billion capital and liquidity buffers to help the economy to
cope with the consequences of the Covid-19 pandemic, the regulator said.
The Central Bank of the UAE's Targeted Economic Support Scheme's (Tess)
zero-cost liquidity facility - first rolled out in March with a Dh100 billion
stimulus package and later increased to Dh256 billion - also helped close to
10,000 SMEs and over 1,500 private corporates to navigate the financial turmoil
caused by the pandemic.
Central bank governor Abdulhamid M. Saeed Alahmadi recently conducted the
quarterly meeting with CEOs of the largest banks operating in the UAE to discuss
the continued preparedness of the banking sector to cope with the pandemic
impact.
Alahmadi urged UAE banks to put more efforts towards combatting money laundering
and financing of terrorism in order to mitigate the risk of financial crimes and
safeguard the UAE's financial system and its stability.
The meeting also touched upon the systemic stability of banks and the importance
of having robust controls to mitigate the risks of money laundering and
financing of terrorism in the UAE.
It also reviewed the macro-economic situation in the country, with a particular
focus on the UAE banking sector, the central bank said in a statement.
The meeting shed light on the implementation of Tess, and discussed the
functioning of the relief measures and the importance of implementing policies
and effective measures towards loan restructuring.
At the meeting, the apex bank updated bank CEOs on the results of the sanctions
screening testing where the central bank has analysed and stress tested
sanctions screening systems of licensed financial institutions by the newly
created Anti Money Laundering and Combatting the Financing of Terrorism unit at
the central bank.
"The Central Bank of UAE reaffirms its commitment towards enhancing monetary
and financial stability in the country through effective supervision,
partnership with financial institutions and a sustained and robust financial
infrastructure. The continuous focus of banks on key financial ratios coupled
with the need to provide assistance to impacted customers was required to ensure
systemic financial stability in the country," said the governor.
"CBUAE's supervisory and regulatory initiatives are also focused on verifying
UAE banks comply with their legal obligations under the UAE anti money
laundering legislation to ensure the country's commitment to applying the
Financial Action Task Force standards and its standing as a financial center of
repute," said Alahmadi said,
On September 1, the UAE has made it mandatory for Hawala service providers, or
informal money transfer service providers that operate in the country to
register, in a move at strengthening its AML/CFT framework.
As per this move, all activities of the hawaladars will be subject to
registration, monitoring and scrutiny in accordance with the law and the AML/CFT
regulations in the country.
CBUAE warned that legal action would be taken against Hawala providers should
they fail to register their applications within 90 days starting on September 1.
Early this month, the National Committee for Combating Money Laundering and the
Financing of Terrorism and Illegal Organisations has announced the launch of 'Fawri
Tick', a a unified system that integrates and aggregates various AML/CFT smart system.
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