UAE c-bank launches examination of Finablr’s subsidiary undertaking
The Central Bank of the UAE has launched an examination of UAE Exchange Centre LLC.
Provider of cross-border payments, FX and payment technology Finablr PLC (LON:FIN) has just posted an announcement regarding its subsidiary undertaking based in the United Arab Emirates (UAE), UAE Exchange Centre LLC.
The business has received a notification from the Supervision Department of the Central Bank of the UAE. The notification stated that the management of UAE Exchange Centre LLC’s businesses in the UAE will be conducted under the supervision of the Central Bank with immediate effect.
The Central Bank has also announced that its inspection team has launched an examination of UAE Exchange Centre LLC in order to verify its compliance with applicable laws and regulations.
Finablr says it is working constructively with the Central Bank and will provide an update to the market in due course.
Finablr said on Tuesday that it engaged an accounting firm to undertake rapid contingency planning regarding potential insolvency with a view to maximizing value in the Group.
On March 16, 2020, Finablr confirmed that the Financial Conduct Authority (FCA) has agreed to the temporary suspension of listing of the shares of Finablr PLC at the request of the company.
The update was published just a couple of days after the company announced a number of factors that were placing significant constraints on its access to daily liquidity and its ability to negotiate longer term financing. Since that announcement, these constraints have become amplified, Finablr said on Monday. They are having a material adverse impact on the company’s operations, including resulting in the company no longer being able to provide certain payment processing services.
In addition, the Board has been informed of the presence of cheques (written by Group companies and dating back to before the IPO), which may have been used as security for financing arrangements for the benefit of third parties. A preliminary view is that the amount of these cheques totals approximately US$100 million. The existence of these cheques has only recently been brought to the attention of the Board and urgent investigations are ongoing.