Posted by: dubaibizniz | May 4, 2008

Central Bank making life difficult?

MoneyWe spend AED 75/- per transfer for our payroll. It is a lot higher than it should be, by all means. However, I put up with it because I think it is very important to go through the banking system, in case of any future disputes. This was not how we have done things for a long time, due to limitations on visas, etc. We weren’t always 100% legal, thanks to silly TECOM regulations (if you don’t rent with us, we can’t give you visas, but we don’t have office space for you, so tough!). Since we have had our office space, we have been as legal as you can be.

However, when we hire new staff, more often than not, they don’t have a bank account ready in time for their first paycheck. So, we issue them a check. The bank returned the check saying that the Central Bank circulated a memo asking banks to refuse cashing salary checks. That is absurd at best.

The staff member is ‘in process’ as far as immigration is concerned. So, he is unable to open a bank account in time to get paid. So what happens now? Well, we issue another check, made out to cash. We pay our new employee in hard cash. Even less traceable!

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Responses

  1. WOW – often, reading wits end laws & logic like the above leaves me in such disbelief. When shall it all come in par with practicalities of the real world?

  2. who are you banking with? (i dont really want to know, but that’s a very high price to pay)
    most local and internal banks charge between 10-15 dhs… some do it for free, but that depends on what your employee count is…

  3. Lloyds TSB is my bank. I wanted a bank that had a smaller team that would care for me as a small business (vs. NBD who are just too rigid for anything).

    What I found was that Lloyds TSB doesn’t care and are just as incompetent as NBD (if not significantly worse). They are, however, better on the Internet banking, which I use a lot.

    It would be a lot cheaper to do transfers online, but unfortunately I have a partner who is not very tech savvy and is not very comfortable with online banking. So, we are paying an extra AED 50/transfer because of that. Oh well.


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