DNFBPs fined by the ADGM Financial Services Regulatory Authority for breaching regulatory reporting requirements

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has imposed financial penalties of between $5,000 to $10,000 on eight Designated Non-Financial Business or Professions (DNFBP) for contraventions of the Anti-Money Laundering and Sanctions Rules and Guidance (AML) Rules.

The FSRA found that the eight DNFBPs had failed to submit their annual AML Returns for the period from 1 January 2019 to 31 December 2019, by 30 April 2020.

A key objective of the FSRA is to prevent, detect and restrain conduct that causes or may cause damage to the reputation of ADGM as well as to promote the safety and soundness of the firms which it regulates. By failing to submit their AML Returns on a timely basis, the DNFBPs had denied the Regulator access to important information concerning their compliance with AML Rules for a prolonged period of time.

Emmanuel Givanakis, Chief Executive Officer of the FSRA, said: “The ADGM places great importance in maintaining a robust regulatory reporting framework which assists in preventing financial crime and supports the UAE’s efforts in combating money laundering and terrorist financing activities. DNFBPs and their Money Laundering Reporting Officers (MLRO) should be fully aware at all times of the requirements of the AML Rules. The FSRA will take enforcement action against entities that are in non-compliance of its AML Rules, including those who have failed to comply with their reporting obligations.”

A copy of the FSRA’s Final Notices can be found on the ADGM website here: ADGM FSRA Regulatory Actions.