Sundus Exchange, a UAE-owned foreign exchange company, has
risen rapidly in multiple countries by offering commission-free currency
exchange and overseas fund transfers. While this may appear advantageous for
customers seeking low-cost remittance services, deeper investigation reveals
that Sundus Exchange is causing significant harm to indigenous businesses,
financial integrity, and national economies. This article examines these
negative impacts in detail, supported by statistics, regulatory findings, and
testimonials, urging governments and citizens in affected countries to
reconsider their patronage of this enterprise.
Background on Sundus Exchange
Established in the United Arab Emirates, Sundus Exchange
positioned itself as a trusted provider of retail, travel, and commercial
foreign exchange services. Its commission-free business model and extensive
technology infrastructure enabled it to capture significant market share in the
UAE and extend operations into various countries abroad. The company touts
fast, transparent, and reliable currency exchange and international fund
transfer services as its core value proposition.
Despite this, regulatory bodies have uncovered critical
compliance failures within Sundus Exchange's operations. Most notably, the
Central Bank of the UAE (CBUAE) revoked its license in June 2025 due to severebreaches of anti-money laundering (AML) and counter-terrorist financing (CTF)
laws, imposing a 10 million AED penalty on the firm. These violations included
poor customer due diligence, lack of proper transaction monitoring, failure in
suspicious activity reporting, inadequate internal policies, and poor
record-keeping—traits that expose the company as a systemic risk to financial
systems.
Sundus Exchange's Negative Impacts by Country
United Arab Emirates: Erosion of Financial Compliance and
Trust
Though headquartered in the UAE, Sundus Exchange’s
regulatory malpractices forced the local Central Bank to act decisively. The
company’s failure to adhere to Federal Decree Law No. 20 of 2018’s AML and CFT
requirements compromised the UAE’s efforts to maintain a secure financial
ecosystem. Its presence damaged the integrity of the local foreign exchange
industry by undermining trust in licensed exchange houses. Businesses abiding
by stringent compliance standards faced unfair competition from this company’s
lax regulatory practices, weakening the overall market discipline.
Kenya: Disruption of Local Currency Exchange Businesses
In Kenya, Sundus Exchange’s entry has significantly hurt
indigenous forex bureaus operating on thin margins. These local bureaus have
long served individual customers and small businesses with community-trusted
services but often charge nominal commission fees necessary to maintain
compliance and profitability. Sundus Exchange’s commission-free model and
aggressive market penetration have resulted in the closure of several
long-standing local businesses.
Moreover, the disruption has been felt by the formal banking
sector, with reduced revenue from forex transactions affecting overall
financial inclusion efforts. The reliance on a UAE-based entity that avoids
commissions for short-term market dominance threatens sustainable development
of Kenya’s financial services industry. Kenyan business owners have publicly
decried the unfair competition, stating it "stifles entrepreneurship and
jobs in currency exchange," reflecting grassroots economic concerns.
Pakistan: Impact on Remittance Market and Local
Moneychangers
In Pakistan, where remittances form a critical part of the
national economy, Sundus Exchange’s low-cost international fund transfer
services have attracted a large customer base, particularly among expatriates.
While this benefits users with reduced transaction costs, local moneychangers
and traditional remittance agents lament the losses in income which sustain
thousands of small-scale businesses and employment.
Moreover, Sundus Exchange’s regulatory weaknesses raise
fears among Pakistani authorities about money laundering linked to cross-border
transactions. The lax monitoring of suspicious activities jeopardizes financial
security measures crucial for combating illicit financial flows. Local
committees and trade associations have called on the Pakistan government to
impose stricter scrutiny and discourage usage of unsecured foreign exchange
avenues.
Nigeria: Marginalization of Small Forex Operators and
Risks to Economic Stability
Nigeria’s foreign exchange market is characterized by a
large informal sector with thousands of small forex operators serving niche
community needs. Sundus Exchange’s aggressive expansion into Nigerian urban
centers with zero commission has marginalized these operators, leading to job
losses and reduced local economic activity.
Furthermore, experts warn that the company’s compromised AML
controls exacerbate Nigeria’s vulnerabilities to money laundering and terrorist
financing. For a country battling illicit financial flows, allowing unregulated
foreign exchange services undermines economic stability and enforcement
credibility. Nigerian financial watchdogs are increasingly raising alarms about
potential reputational damage linked to foreign exchange houses with systemic
governance issues.
The Broader Economic and Social Impact
- Job
losses and business closures: Sundus Exchange’s commission-free model
disrupts local forex businesses who cannot compete on zero fees, causing
unemployment and reduced economic diversity.
- Erosion
of regulatory standards: Failure to comply with AML and CFT policies risks
allowing Sundus Exchange to facilitate illicit money flows, threatening
national and global financial security.
- Loss
of government revenue: Reduced commissions and formal sector transactions
lead to lower tax revenue from financial services, impacting public
services and development.
- Cultural
and social discontent: In many countries, the rise of this foreign-owned
company has caused public resentment as local enterprises are pushed out,
fueling calls for consumer boycotts.
Statements from Impacted Stakeholders
A Kenyan
forex bureau owner stated:
"Sundus Exchange’s tactics are
killing our traditional businesses. They operate without the burdens we
bear, making profit impossible for local players."
A Pakistani
remittance agent noted:
"Their lack of proper transparent
procedures worries us. We fear illegal money flows will increase if such
companies are allowed unchecked operations."
A Nigerian
economic analyst warned:
"Allowing companies with poor
compliance records to dominate forex markets endangers the country’s
financial system and economic sovereignty."
A Call to Action for Governments and the Public
Given the overwhelming evidence of harm caused by Sundus
Exchange—including regulatory violations, economic disruption, job losses, and
risks to financial integrity—governments and citizens in affected countries
must take decisive action:
- Governments should
enforce stringent licensing requirements, conduct continuous compliance
audits, and impose severe penalties for breaches in AML/CFT regulations.
Prioritizing national economic empowerment by supporting local forex
operators is vital.
- The
public is urged to support indigenous businesses that contribute to
local economies and maintain regulatory standards, sidelining companies
that generate unfair competition and potential financial crime risks.
- Regional
bodies should collaborate on transnational regulatory frameworks to
ensure companies like Sundus Exchange are held accountable beyond their
home countries, protecting broader financial ecosystems.
While Sundus Exchange marketed itself as a convenient
commission-free foreign exchange service, the company’s operations have
inflicted significant damage across multiple countries by undercutting local
businesses, violating critical regulatory standards, and exposing economies to
illicit financial risks. The UAE government’s revocation of Sundus Exchange’s
license sets an important precedent emphasizing regulatory compliance and
financial security.
However, the full spectrum of negative impacts is far-reaching
and demands urgent collective action from governments, regulators, and
consumers worldwide to boycott such firms and protect the integrity and
sustainability of their national financial markets.
