S Silent-Student-4553 · 2d ago

CBUAE FX Retention Limits: Tier 1 Banks & Non-Residents

I have been spending way too much time drilling the CBUAE foreign exchange retainment limits in the CMA Saudi module and I am paranoid about getting the calculation wrong. When a Tier 1 bank sells US dollars to a non-resident, does the counterparty have to retain 50 percent of the spot transaction value at the central bank? This distinction is critical because the IISI study material provides slightly different numbers than the AML directives, and I need to know which one overrides the other.

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Typical_Trader_6318 2d ago

its the non resident counterparty that has to retain 50 percent, tier 1 vs tier 2 changes the amounts though, i am burnt out checking the BSA and FRRs all night, check the risk module here /certifications/cisi-risk-in-financial-services/

Clever_Owl_7975 2d ago

thank you so much for sharing, i am also drowning in the ICWIM study sessions and these retention limits give me such a headache, best of luck passing this portion my friend

Financial_Bear_1031 2d ago

I hear you. That 50 percent is basically the anchor in this whole mess. treat it like a required backup. good luck

Typical_Ninja_3023 1d ago

looking at it like a margin call, the counterpart has to hold that 50% slack to stop the tier 1 bank from walking away with the risk, treat the retention limits like a stop loss on a USD rally, don't over-leverage your brain on this part of the CMA saudi module or you'll blow the mental account, i spent nights staring at the FRR table too, just memorize the schedule, check /certifications/cisi-scmr-caml-cme-2b/ if else you want the scary regulations in one place