Dubai imposes heavy fines on 2 firms for failing to comply with anti-money laundering rules

The Dubai Financial Services Authority (DFSA) on Wednesday published decision notices imposing financial penalties against Alessandro Faro Trading Ltd (AFTL), a non-regulated Dubai International Financial Centre (DIFC) incorporated company, and Fius Capital Limited (FCL), an authorised firm.

The DFSA imposed a financial penalty on AFTL of $25,200 (Dh92,610), after a settlement discount. Were it not for the settlement, the DFSA would have imposed a financial penalty of $36,000 (Dh132,300).

The DFSA took action against AFTL for carrying on business as a dealer in precious metals and precious stones in or from the DIFC without being, or having ever been, registered with the DFSA as a designated non-financial business or profession (DNFBP), as it was required to be.

The DFSA notes that dealers in precious metals and precious stones are included in typical money laundering typologies and, by failing to register as a DNFBP, AFTL was not supervised by the DFSA in relation to the requirements in DFSA administered legislation, which created serious risks of money laundering in the DIFC.  However, the DFSA does not allege that AFTL engaged in money laundering.

The DFSA also imposed a financial penalty of $11,340 (Dh41,650) after FCL agreed to settle, which led the DFSA to apply a settlement discount. Were it not for this factor, the DFSA would have imposed a financial penalty of $32,400 (Dh119,000).

The DFSA took action against FCL for its failure to, among other things, submit a number of regulatory returns by the specified deadlines despite a number of reminders.  This included the failure to submit its annual AML return.

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