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3/13/25, 11:14 AM UAE Remittance FinTechs Must Abide by Central Bank Rules

UAE Remittance FinTechs Must Abide by Central Bank Rules: Al Ansari
Exchange’s Deputy CEO

March 11, 2025
Date:

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The UAE‘s remittance industry, a critical lifeline for millions of expatriates, is undergoing a significant transformation as financial
technology (FinTech) companies increasingly enter the market. However, Rashed Al Ansari, Deputy CEO of Al Ansari Exchange, has
emphasized the need for strict regulatory compliance by these FinTech players to maintain market integrity and consumer trust.

Regulatory Compliance: A Necessity for FinTechs

Speaking on the challenges posed by certain FinTech companies, Al Ansari highlighted that many operate without adhering to the
Central Bank of the UAE’s licensing requirements. He noted that some of these firms are only regulated by free zone authorities and not
by the central bank, which is mandatory for offering services in dirhams. “They are violating the laws of the land,” Al Ansari stated,
adding that such practices undermine regulatory frameworks and pose risks to consumers.

Al Ansari criticized predatory pricing strategies adopted by some FinTechs, including offering free remittances or monetary rewards to
attract customers. “This is not sustainable for the organization or the country in general,” he said. He also pointed out that these
companies fail to contribute to Emiratisation efforts or the UAE’s tax regime, further limiting their positive impact on the local
economy.

The Role of Traditional Players in a Changing Landscape

Despite being a market leader, Al Ansari Exchange remains open to collaboration with FinTech firms that can offer innovative solutions
to enhance efficiency and reduce costs. The company has been actively working with the Central Bank of the UAE, the Ministry of
Economy, and free zone regulators to improve awareness about regulatory requirements and ensure compliance across the industry.

The remittance sector has seen rapid digitization since the COVID-19 pandemic. Before 2020, less than 1% of Al Ansari Exchange’s
transactions were conducted digitally. This figure surged to 24% by late 2024, reflecting changing consumer preferences for faster and
more convenient digital solutions. The broader UAE market has also shifted, with 11% of cross-border remittances now occurring
through digital channels.
Challenges in Regulatory Compliance

Operating in a stringent regulatory environment comes with its own set of challenges for traditional exchange houses like Al Ansari
Exchange. Companies must allocate significant resources to ensure compliance with anti-money laundering (AML) and counter-

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