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First Abu Dhabi Bank rejects Qatar allegations

Staff Reporter - QFCRA on Sunday imposed $55m fine on the UAE lender.

First Abu Dhabi Bank (FAB) on Sunday rejected allegations by Qatar Financial Center Regulatory Authority (QFCRA) for obstructing a probe as the UAE's largest bank stressed that it was providing all relevant information required under the Qatar Financial Center laws to the authority.

"As stated previously, the allegations by the QFCRA in the QFC Courts are entirely false, and First Abu Dhabi Bank unequivocally denies them. It is not coincidental that the actions of the QFCRA take place at the time that the UAE, along with several other countries, have ended their diplomatic relations with the State of Qatar," said a FAB spokesperson on Sunday.

QFCRA on Sunday imposed a $55 million fine on the UAE lender for obstructing a probe into suspected market manipulation.

The bank stressed that it conducts its business in accordance with the highest professional standards and in full compliance with the laws and regulations of all the jurisdictions in which it operates.

"Although the QFCRA's allegations are false, FAB made good faith efforts to engage with the QFCRA to resolve the matter, with FAB's QFC branch providing all relevant and responsive information that it was required to disclose pursuant to QFC law. Any allegations that FAB's QFC branch failed to provide appropriate disclosures are false," said the spokesperson.

On June 19, FAB had informed QFCRA that it would relinquish its QFC branch licence and permanently close the branch.

The UAE lender is in the process of effecting an orderly wind-down of the QFC branch's operations, following many months of baseless actions by the QFCRA that have made it impossible for FAB's operations to continue in Qatar, said the spokesperson.

FAB shares fell 1.33 per cent to Dh14.82 on Sunday, in line with the decline across the Gulf markets due to US-China trade war.

waheedabbas@khaleejtimes.com