The new arrangement to handle shipments of currencies will not affect the trade in the UAE, said officials.
This, however, might help the authorities detect fake banknotes coming into the UAE, they said.
Recently, Sheikh Ahmed bin Saeed Al Maktoum, president of Dubai Civil Aviation and chairman of the Emirates Group, signed an agreement on behalf of Transguard with the Ports, Customs and Free Zone Corp. under which Transguard will inspect all shipments of banknotes into and out of Dubai.
Under the terms of the agreement, Transguard will provide cash processing services at its Cash Management Centre (CMC).
All banknote shipments will undergo a verification process at the CMC after which a certificate of verification (COV) will be issued.
Only shipments with a valid COV will be allowed to be imported or exported. The inspection process will also apply to hand-carried banknote shipments.
The arrangement comes after a few recent incidents in which Dubai Customs confiscated a huge chunk of counterfeit banknotes being brought into Dubai through Dubai International Airport.
Officials said the import of currency into the emirate has increased considerably, including fake ones.
"Every month, we handle a large amount of cash being brought in by traders. The new arrangement will help us to check the cash instantly and Transguard will be able to help the businessmen to deliver it to the desired location," said a Dubai customs official.
Dubai customs currently charge a Dh30 fee for each declaration by the currency traders or carriers.
Ali Lalani, senior manager of Transguard, said: "Upon declaration, Transguard will take the currency at the Cash Management Centre and issue a COV. We will also be able to transport and deliver the cash to the customer's desired location for a fee."
Every month banknotes worth millions of dollars are brought into the UAE by traders to be sold or exchanged at e money exchange houses.
These currencies come from a number of sources including the Middle East, South Asia and the Far East.
According to market sources, a number of hawala operators use some agents, known as carriers, to ferry the notes from their countries to the UAE. Most South Asian countries ban the export of huge sums of cash.
The money is smuggled out of the airport. In some cases, cabin crew have been known to be involved in carrying cash. The import of banknotes into Dubai is not illegal as long as a trader declares the amount and clears this through the customs. Many use this as an excuse to bring in fake currencies, along with the genuine notes.
"Every month about 40 to 50 crores (400 to 500 million) in banknotes are carried through Dhaka airport to either Dubai or Singapore. These shipments are done with the help of civil aviation officials there who are usually on the payroll of the smugglers.
"At any given time, a trader can count on a minimum six per cent profit upon exchanging it at money exchange houses.
So, if a trader brings in 10 million taka, he can still count on 600,000 taka. For many people this is a very lucrative business and the return is instant. Sometimes, because of the fluctuation, traders earn more," said an informed source.
Meanwhile, traders have welcomed the move, saying it will reduce the import of fake currencies and help the emirate regulate the currency trade.
B.R. Shetty, vice-chairman of the NMC Group, which also includes the UAE Exchange Centre, said: "I welcome the new move. It will help regulate the currency movement market and clear it of fraudulent operators.
"According to the new regulations, we keep the identity of any remitter who transfers Dh2,000. This helped us in detecting fraud."
Gulf News
