Page 4 FERG: A history in brief
Page 8 Events, meetings and celebrations Thursday, February 14, 2019 A gulf news sponsored supplement
Message from The Chairman
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he Foreign Exchange & Remittance Group (FERG) has completed 10 years and in this short span, achieved the distinction of being recognized as the voice of the Exchange Industry. FERG has been successful in highlighting the contributions made by the Exchange Industry both within the UAE and the outside world. Today, regulators, government bodies, banks and institutions both within the UAE and globally, acknowledge the vital role played by the exchange companies in transferring millions of dollars across the world through official channels, in a safe, secure and economical way. Exchange companies are licensed and regulated by the Central Bank of the UAE and cater to the financial
It is our vision to make the UAE the leader in the exchange and remittance business with the support and guidance of the Central Bank and Government of the UAE.�
needs of both the multinational resident community in the UAE, as well as the millions of tourists visiting this beautiful Country. One of the main goals of FERG is to ensure that our members strictly abide by regulations of Central Bank of the UAE and other major interna-
tional organizations to fight money laundering and suspicious funding activities and implement best AML practices. Our regular AML Workshops are equipping the staff of our members with the skills required to identify the threats and challenges and manage risk. FERG endeavours to work for the benefit of the Exchange Industry in the UAE by ensuring a conducive business environment that helps them grow and flourish within the legal and regulatory framework and make significant contribution to the economy of the UAE. It is our vision to make UAE the leader in the exchange and remittance business with the support and guidance of the Central Bank and Government of UAE. Thank you Mr Mohamed Ali al Ansari, Chairman, Foreign Exchange & Remittance Group
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FERG: 10 YEARS OF COMMITMENT
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AL FARDAN EXCHANGE LLC
“Remittances will continue to remain upbeat”
THURSDAY, FEBRUARY 14, 2019
The history of the Foreign Exchange and Remittance Group he initiative to form FERG started in the year 2001, wherein, some of the large and leading exchange companies decided to come together and hold regular meetings to discuss current market situations, opportunities and threats facing the exchange industry. This initiative gained momentum with the Central Bank Governor calling a meeting of all leading exchange companies in January 2004 to discuss the challenges facing this Industry. One of the important outcomes of the meeting with the Governor was the initiation of the Steering Committee, comprising of 10 leading exchange companies, who relentlessly worked towards bringing in most of the exchange companies to a common platform. Its vision and mission is to foster the development of a dynamic, innovative and stable foreign exchange and remittance industry that contributes to the economic and social wellbeing of our customers and position UAE as the market leader in the money exchange and remittance business. The body’s goals and objectives entail becoming a strong and united Group to voice the views and opinions of its members and creating awareness about the role of exchange companies in transferring millions of dollars across the world through official channels in a safe, secure and economical way within the regulatory frame work of the Central Bank and Government of the UAE. Over the next couple of years,
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sama Hamza Al Rahma – Vice Chairman of FERG and Director of Al Fardan Group / CEO of Al Fardan Exchange, elaborates on sectoral trends and market conditions.
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• What new initiatives are taken under the Foreign Exchange and Remittance Group [FERG] to improve the overall remittance market conditions in the UAE? FERG has taken many initiatives; one of them is upgrading the standards of the compliance systems within the exchange houses to ensure we are at par with the international level. These upgrades enhance the safety and security of the financial system. We have been training our community, conducting workshops at all levels — senior management, middle management and staff. Thomson Reuters is our consultancy partner, offering an e-learning platform on anti-money laundering and combating terrorist financing, thus reaching out to broader staff numbers. • What are the trends you have seen in the money exchange industry in recent years in the UAE? The primary trend is disruption of technology and digitalization of services. Everybody, including the strategy of the government is that of going digital and smart for all their facilities. Hence, the consumer expects to have access to services online or through apps. However, this requires a clear regulatory framework, which I believe the Central Bank of UAE is currently working on and will engage us in their future strategy. The initiative of digital identification is under review by the Central Bank. • Have you seen an overall surge in remittance values and transactions this year? Who have been your major clients and which nationalities? The market sentiments look positive. The trend will continue to remain upbeat due to the people having confidence in the UAE’s economy and a clear transparent budgetary approach of the government. Our major clients last year have been Indians, Filipinos, Pakistanis and Egyptians, as they benefitted most from favourable rates at a particular stage in the year, encouraging them to remit more. If the dollar remains strong in the coming few months due to clarity in economic indicators in USA, then the Dihram will also continue to be strong against other currencies, encouraging people to gain from such market opportunities. — As told to Hina Navin
UAE GDP
UAE is on a positive growth trajectory as real GDP grew 0.8 per cent while non-oil GDP grew by 2.5 per cent last year with a strong outlook for this year. UAE’s GDP growth was projected to be 3.4 per cent but the Central Bank of the UAE lifted its growth forecast for the country’s non-oil GDP to be 3.9 per cent
WORLD REMITTANCE DATA FDI Remittances Private debt & portfolio Equity ODA
Remittance flows to low and middle-income countries are larger than official development assistance and more stable than private capital flows, 1990-2019
(US$ Billion) 700 Source : World Bank
the Steering Committee held regular meetings and took up issues with various regulatory and government authorities such as, Central Bank of the UAE, Reserve Bank of India, Dubai Police, Human Resources Committee for Emiratization, etc., with an objective to facilitate easier operational norms & to create a conducive business environment for the money exchange industry in the
UAE. In the course of time more exchange companies joined the Committee as Rotating Members to strengthen and make it more vibrant. The efforts of the Committee to register the Foreign Exchange & Remittance Group (FERG) were successful with the registration of the Group with Dubai Chamber of Commerce & Industry in October 2008. The first General body Meeting of FERG was held on November 29, 2008. The number of members has since grown to 67, who aggregately cover over 90 per cent money exchange and remittance business in the UAE. Meetings of the Representative Committee and all members are held at regular intervals. FERG is registered with Dubai Chamber of Commerce and Industry, the body concerned with patronising and supporting the various activities of the private sector in the United Arab Emirates.
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FERG: 10 YEARS OF COMMITMENT
THURSDAY, FEBRUARY 14, 2019
OUTWARD REMITTANCE FROM THE UAE
EXCHANGE COMPANIES IN THE UAE 2018
Exchange Houses in UAE
• Total Employees in Exchange Sector: >13,000* Exchange & Remittance Business
Exchange Business
• Total number of UAE nationals in Exchange sector > 1,150*
Branches ADVERTISER’S CONTENT
WALL STREET EXCHANGE
Riding the digitalization wave within remittances sector Investing in the latest technologies and listening to the voice of its customers are key to the organisation’s strategy says Wall Street Exchange CEO, Graham Flannery
oney remittance is a vital part of the global economy, of which the UAE continues to benefit, primarily due to its diverse expatriate population and increasing tourism industry. However, with the emergence of disruptive technologies and increasing smart phone penetration, the remittance industry is experiencing significant transformation. Now, more than ever, it has become imperative to move towards digitised platforms, in line with the commitment of the UAE Government to digital innovation. By following an aggressive expansion plan to shift from physical
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retail stores to mobile and online platforms, Wall Street Exchange, as a well-established foreign exchange and remittance business, is fast emerging as a key differentiator in the marketplace. Graham Flannery, the new CEO of Wall Street Exchange, says, “Wall Street Exchange is one of the oldest and most trusted foreign exchange and remittance business in the UAE. “As a leading player in the remittance industry for over 35 years, we have developed a deep insight into our customers’ current and future expectations. We intend to utilise digital technology to provide new innovative solutions for our customers,
with a focus on delivering a great customer experience and ease of use; supported by a high quality and robust compliance framework.” Wall Street Exchange, while being
technology driven is also highly customer centric, firmly believing that in blending these two essentials, it can deliver a compelling customer experience. Says Flannery, “Interacting with our customers, studying their lifestyles and anticipating their existing and future requirements, enables us to undoubtedly serve them better - technology is what will drive our business into the future.” Flannery concludes, “This is an exciting time for the industry and our organization. The reality is, it is going to be survival of the fittest and the adoption of new technology is certainly going to play a key role in our future strategy and success.”
FERG: 10 YEARS OF COMMITMENT
Thursday, February 14, 2019
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redha al ansari exchange
Trusted across generations t’s a moment of pride for the Foreign Exchange and Remittance Group (FERG) as it completes 10 years of formation, fostering the development of a dynamic, stable and innovative Foreign Exchange and Remittance industry in the UAE. As a founding member of the FERG forum, Redha Al Ansari Exchange congratulates each member, who relentlessly worked towards the success of the forum, making it an inevitable part of the money exchange industry in the UAE. Redha Al Ansari Exchange, a leading remittance brand in the UAE, is trusted across generations for delivering quick, reliable and economic money transfer solutions, through its wide network of branches in the UAE. With decades of hands-on expertise in money transfers and foreign exchange business, the brand has instilled a profound sense of passion to serve its customers
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and ensure maximum value to the remittance made by its customers. “The brand is touching the lives of thousands of customers on a daily basis and we always ensure that the service across our branches are delivered with a personal touch keeping the customer as the core of every action,” said Humaid Al Ansari, CEO, Redha Al Ansari Exchange. “Each transaction we do gets screened through our stringent Anti Money Laundering (AML) practices ensuring that the transaction is delivered for goodness.” By maintaining close connections with financial institutions across the globe, Redha Al Ansari Exchange
Humaid Al Ansari CEO, Redha Al Ansari Exchange
serves its customers more intelligently with quick credits and with an array of customised services. The company aims to uphold the highest operating standards to safeguard the interest of all stakeholders including customers, shareholders, employees, partners and the community in which it operates.
The brand endlessly updates the processes and technology and trains its staff to ensure that the brand is well outfitted with high-level AML standards to combat money laundering, terrorist financing and related financial crimes. Besides its global money transfer services and offering foreign exchange at competitive rates, Redha Al Ansari Exchange also offers a range of services like UAEWPS-compliant payroll solutions, bill payments, National Bonds sales and international mobile top-ups among others. The industry is fleeting through a transition phase with advanced technology implementations and revised regulatory standards; however, Redha Al Ansari Exchange being one of the oldest foreign exchange brands is equipped to keep in line with the changing demands of its customers, adding convenience and enhanced values.
L M exchange
A recognised brand M Exchange was established in 1970 with a vision to provide fund transfer and forex services at a time when there was lack of organised fund-transfer facilities in the country. For more than 49 years, L M Exchange has been serving more than 180 nationalities across the UAE and Oman. Constantly growing, it aims to open more than 200 branches with a presence in more than six countries by 2020. Today, under the leadership of its Founder and Director, Ranjit Ved (in picture), L M Exchange is a tr ust wor thy n a m e , serving its customers Ranjit Ved Founder and through 34 Director, branches in L M Exchange the UAE and Oman.
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FERG: 10 YEARS OF COMMITMENT
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THURSDAY, FEBRUARY 14, 2019
MOMENTS
FERG Election
Meeting with Dubai Police
ACTION PLAN
Regular dialogues with the regulators
FERG AGM 2018 & 10th Anniversary
FERG meeting with OFAC
AML Standardization Manual Launch
Awareness trainings by Dubai Police
Continuous training on AML/CTF, Counterfeit Currency, Prevention of Frauds etc and other areas of training as per the requirements of members
Involving in more CSR initiatives
Membership campaign
Extracurricular activities for FERG member staff Meetings with Law Enforcement for new plans, strategies and more awareness programs
More interactive programs for member staff
Creating more opportunities for the members for attending various seminars and conferences
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TRAVELEX
A market-leading foreign exchange network ounded in 1976, Travelex is proud to have become a market-leading foreign exchange network that has grown to over 1,400 ATMs and 1,500 stores at both on-airport and off-airport locations around the world. In the past 42 years, we have greatly expanded our offerings and services, which now include the processing and delivery of foreign currency orders for major banks, as well as travel agencies and hotels. In addition, we source and distribute large quantities of foreign currency banknotes for customers such as central banks and international financial institutions. Travelex
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is also a trusted name in global remittance services and is now moving quickly into the payments space. Over the past few years, we have invested significantly in digital products and services, which has enabled us to offer flexible solutions to capture walkup customers in-store, as well as tap into the rapidly growing online pretrip market. Today, we process over 70 million
transactions each year, operating across the entire value chain of retail foreign exchange in over 70 countries. This success is rooted in the Travelex spirit of going above and beyond the call of duty in delivering the highest standards of professional service to our customers and partners alike. Every day, our 8,900 employees work tirelessly to ensure that our stakeholders experience a state-of-the-art Foreign Exchange, Money Transfer and Payments experience, and our commitment to expanding our world-class offerings throughout the UAE continues to grow. The journey that Travelex has
taken with the United Arab Emirates is one in which all parties reap the benefits of mutual cooperation based on our shared values of innovation, transparency, and passion, as well as a singular concern for the well-being and prosperity of the UAE. As we come together to celebrate the 10th anniversary of the Foreign Exchange and Remittance Group (FERG), Travelex looks forward to strengthening its commitment to the highest standards of compliance and looks forward to working with the UAE in furthering its story of success as a worldclass hub of innovation and enterprise.
FERG: 10 YEARS OF COMMITMENT
Thursday, February 14, 2019
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UAE exchange
Remittance as an experience emitting money may just be a mundane transaction when you look at it from the outside. The toils, sacrifices and the anguish of the remitter always remains in the background. In earlier days, many of the expatriate workers were seen resorting to using informal remittance channels that coincided with widespread instances of fraud, financial malpractices and Ponzi schemes. To combat such menace, few of the exchange houses in the United Arab Emirates (UAE) collaborated and formed the Foreign Exchange & Remittance Group (FERG) in 2003. A first-of-its-kind initiative in the UAE remittance market, FERG has helped in regulating the monetary flows and eliminated the informal channels of remittances. Over the years, FERG has become a platform for exchange houses to discuss
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market situations, opportunities and threats facing the financial industry. UAE Exchange, a renowned financial services brand established in the UAE, is one of the
founding members of FERG. The financial brand has been a front-runner when it comes to leveraging its technological capabilities to facilitate seamless movement
of money across geographies and has helped transform the lives of many migrant workforce by being a stepping stone towards their financial aspirations. The digital offerings too echo the brand’s ambitious pursuit of embracing technology for service excellence. As a member of FERG, UAE Exchange believes that in today’s age of disruptive technology where the financial landscape is evolving rapidly, it is imperative to have strong compliance mechanisms that address transparency, accuracy, and convenience. For instance, the increased cross-border financial activities have brought a host of challenges like operational ambiguity, money laundering, terrorist financing, fraudulent cases, cyber-crime etc. which pose both short- and long-term negative impact, and risk to the nation. To curb and manage the
existing and potential risks in the financial industry, UAE Exchange has tied up with best-in-class-technology solution providers to strengthen its compliance architecture. Internal modules like the Suspicious Activity Monitoring, Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), Watch List Filtering and Integrated Fraud Management provide UAE Exchange with realtime alerts for any possible money laundering, terrorist financing and fraudulent activities. The RSA Archer GRC (Governance, Risk & Compliance) Platform implementation has also demonstrated better risk management. As FERG celebrates its 10th anniversary, UAE Exchange reaffirms its commitment to safeguard the interest of the customers, to strengthen the industry’s capabilities and to contribute towards the sustainable development of the country.
lulu exchange
Keeping pace with innovation he contribution of expats in the growth story of the UAE has been significant. Through trade and business, the need of having secure and cost-effective money transfer systems also arose. Remittance outflow from the UAE was barely Dh10 billion nearly 20 years back, according to World Bank reports. Today, the UAE, which is home to nearly 9 million expats, sends out more than Dh160 billion in remittances through financial services companies. According to the half yearly report from the Central Bank of the UAE, more than 75 per cent of outward remittances are done through the exchange and remittance companies. The phenomenal rise reflects the immense growth opportunity that the UAE presents. As exchange houses took shape, and regulations grew, concerns regarding the application of regulations also arose. The need to have an organised support system for the sector initiated the setting
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Adeeb Ahamed Secretary, FERG & Managing Director, LuLu Financial Group
up of FERG. LuLu Exchange, one of the leading financial services companies in the UAE is proud to have been part of the organisation since the beginning. An ISO 9001: 2015 certified organisation, LuLu Exchange has over the years grown to become one of the leading financial services brand trusted by expats to send money to their loved ones. With products like the LuLu Money app, which allows super quick and easy money transfers to your loved ones, LuLu Exchange remains at the forefront of technological innovation in this
sector. The LuLu Money app has various features including instant online transactions, payment tracking in real time, rate alert setting and payment history, among others. Besides remittances, customers can exchange foreign currency at competitive rates and avail other value-added services like credit card payments and mobile top-up for their home country, among others. The organisation also offers its customers the Gold Card, which allows them to obtain a host of benefits at LuLu Exchange bureaus, and
discounts at various other partner outlets across the length and breadth of UAE. Over the years, FERG has endeavored to work for the benefit of UAE’s exchange industry by ensuring a conducive business environment with the backing of the Central Bank of the UAE, which has helped companies grow and flourish, while making a significant contribution to the economy of the UAE. Speaking on LuLu Exchange’s association with FERG, Adeeb Ahamed, Managing Director of LuLu Fi-
nancial Group and FERG Secretary said, “From just a 10-member organisation, FERG has today become a 67-member strong association. We, at LuLu Exchange, are proud to be part of this organisation, which has become the voice of our sector. Through the support of member organisations and the leadership, our industry has found itself as the torchbearer not just within the UAE but across the region and world as well.” “We are entering a pivotal moment in the history of international remittance industry and we could fundamentally change and improve how business is done. With the support from our regulators and through the efforts of FERG we have the confidence, drive, energy and capabilities to lead the transformation of our sector.” LuLu Exchange currently has more than 180 branches spread across the UAE, Oman, Kuwait, Qatar, Bahrain, India, Seychelles, Hong Kong and Philippines.
10 FERG: 10 YEARS OF COMMITMENT
Thursday, February 14, 2019
Milestones Forming the Foreign Exchange & Remittance Group (FERG) was the vision of the Steering Committee comprising of 10 leading exchange companies who steadfastly worked to bring the exchange companies on a common platform. Even before the formal constitution of FERG, the Steering Committee resolutely took up issues affecting the Industry with various Government and Regulatory bodies both within the UAE and outside and was successful in resolving them. Below listed are some of the achievements.
1. Proposed amendments to Policies of Central Bank of the UAE 2. S upported the government’s Emiratization Policy to bring Emirati Work force to member exchange companies. Partnered with the government for 3. successful implementation of Wages Protection System (WPS) 4. Close liaison with police department on investigations relating to financial transactions and anomalies 6. Conducted 66 workshops and trained more than 3,800 staff so far on AML & CTF, Counterfeit Currency, Prevention on Fraud, etc. 7. Instrumental in the reduction of Bank Guarantee requirement of Indian correspondents from 3 days average drawing to 1 day.
8. Released three versions of AML Standardization Manual 9. Launched eLearning module as an alternate mode of training 10. Held regular meetings with the UAE Central Bank & Law enforcements. 11. Regularly represented in the roundtable conferences of Dubai Chamber 12. 51 Board Meetings held from 2010 to date. 13. Yearly participation to ACAMS MENA conference as the speaker and supporting sponsor. 14. More than 200 inquiry emails of Dubai and Abu Dhabi Police circulated to the members. 15. More than 100 Fraud alerts shared with members.
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al rostamani international exchange
New branches opened in Dubai and Sharjah
l Rostamani International Exchange LLC (ARIE), is a part of the Al Rostamani Group, one of the oldest, largest and highly reputed business groups in the UAE. ARIE, established in 1979 has been the preferred choice for both residents and expatriates for their currency exchange and remittance requirements consistently, offering endto-end services combined with very economical rates and charges. ARIE has recently embarked on an expansion mode to increase its footprint in select areas of UAE. With this objective in mind, the company recently opened new branches in Sharjah King Faisal Street (inside Choithrams super market), Jumeirah Village Circle, Dubai Marina and inside Deira City Center (opposite Carrefour Hypermarket).
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These new branches will extend our reach to these new locations and enhance convenience to our customers. The company will be adding more new branches in the coming months. The Company’s focus on technology enables ARIE to offer seamless remittance solutions to almost all countries of the world. With an objective to become the preferred one stop shop for all customer requirements, the Company also offers products like Cash Passport (Multicurrency Prepaid Travel Card), Foreign VAT refunds, assistance to apply for PAN Cards and many more. It has always been our endeavour to deliver seamless and positive customer experiences through the brand’s portfolio of innovative service. For more information visit www.alrostamaniexchange.com