Dubai’s DFSA slaps fines of $25,000 on Al Ramz Capital for failing to report suspicious trades

Dubai: The Dubai Financial Services Authority (DFSA) announced Friday that it has issued a Decision Notice against Al Ramz Capital LLC – a DFSA Recognised Member - citing its failure to report suspicious transactions. The DFSA has imposed a financial penalty of $25,000 (Dh91,813) on the firm. 

The case involves ‘wash trades’ executed via Al Ramz’s online trading platform, where there was no change in the ultimate beneficial ownership, DFSA explained in a statement. Such trades are considered potential market abuse as they can distort an investment's supply, demand, or price. In this instance, the trades resulted in a 27 per cent temporary spike in share prices on the final day of trading. 

According to the statement, Nasdaq Dubai had flagged the transactions as suspected wash trades to Al Ramz, but the firm did not report the activity to the DFSA, as required under Recognition Rule 3.4.5(1). 

That said, Al Ramz has disputed the DFSA’s findings and referred the matter to the Financial Markets Tribunal (FMT). Now, the tribunal will review the case and decide on the appropriate action, which could confirm, modify, or overturn the DFSA’s decision. 

Following this, DFSA stressed the need for robust surveillance systems and timely reporting of suspicious activities to safeguard market integrity and protect investors. The DFSA has also said it would refrain from making additional public comments until the FMT concludes its review.