UAE Exchange receives IAMTN Award at the third GCMT Conference

UAE Exchange receives IAMTN Award at the third GCMT Conference

Dr. B.R. Shetty set up UAE Exchange in 1980. The company now employs 5000 people worldwide. Since then, it has grown from one branch in Abu Dhabi to more than 400 branches in over 16 countries and agent arrangements in over 83 countries. Mr Mohan Shetty received the IAMTN Award at the GCMT Conference in London on behalf of Dr B.R. Shetty and UAE Exchange.

Says Mr Shetty, “Our major business has been in the Middle East and South Asia corridor. We are now looking at expansion within the UK and Europe. We are happy to be at the GCMT 2007 Conference to gain information and look into tie-ups, particularly for the European segment, where currently we have no direct outlets. UAE Exchange has six agent outlets in the UK.”

On the issue of regulation, Shetty responds, “We have introduced checks and controls of our own since 2001. UAE Exchange is the first company in the Middle East to introduce customer registration. Any businesses remitting more than $3000 must submit photo ID and address proof. When the regulations came in force, we were ready.”

He speaks to the issue of criticism of GCC countries’ adoption of regulation. “Take the example of UAE Central Bank, very good reporting system quarterly for money exchange companies. There has been proper supervision and audits by the Central Bank. We have a robust system of regulatory checks in UAE. In the UK, the transmission amount over which customer ID is required is £600. In the UAE, the amount is 2000 dirhams. We are not expecting more regulation from the GCC. UAE Exchange has a dedicated compliance department.”

Of the hawala system, Shetty says, “The informal market is a threat to the organized sector. But in the UAE, the hawala operators register with the Central Bank and they are supposed to keep records. More regulation may, on the other hand, drive many such outfits underground. Customers need to be educated about sending money through formal channels and opening accounts. Banking is not so developed on the receiving side at times, which is one of the reasons for the survival of these networks. We offer official remittances within 24 hours, which is a great alternative.

Shetty sums up by saying, “We have achieved success through service – advanced technology at a reasonable price. For instance, we have remote printing facility from UAE to South Asia – Bangladesh, Pakistan, India, and Sri Lanka – where the drafts are printed remotely and delivered so that delivery time is cut down. We have a strong complaint redress system which has led customers to trust us over time and improve our service.”