DFSA fines Dubai financial firm Dh5 million for inadequate compliance systems, controls

Dubai: Dubai's regulatory authority for financial services and products, Dubai Financial Services Authority (DFSA), said that it had imposed a fine of $1.36 million (Dh5,023,375) on R.J. O’Brien (MENA) Capital Limited.

The authority fined the company for a number of contraventions of DFSA legislation, including for having inadequate compliance systems and controls.

The amount of the fine was reduced by almost half from $2,793,403 (Dh10,251,789). This was because, amongst other things, the company offered the DFSA an Enforceable Undertaking (EU) to remediate the failings and agreed to settle the matter. The DFSA also did not find any evidence that the company acted deliberately to contravene DFSA administered laws and rules. 

Patrick Meaney, Head of Enforcement of the DFSA, said: “Authorised Firms must ensure that they have adequate compliance and other resources to be able to comply with their legal and regulatory obligations. Compliance is not an incidental cost of doing business, it is a critical function that must be adequately resourced in terms of both number and quality of staff.”