Abu Dhabi sets new fines of up to $54 million for major regulatory breaches

Dubai: The Abu Dhabi Global Market (ADGM) Registration Authority has introduced new rules that sharply increase fines for regulatory breaches — with penalties now reaching up to $54 million for the most serious violations.

The new Administrative Regulations 2025, now in effect, replace ADGM’s older licensing framework and establish a clearer system for investigations, penalties, and appeals. The move strengthens ADGM’s position as one of the region’s most transparent and well-regulated financial hubs.

Under the new framework, fines have been restructured into a two-tier system. Tier 1 violations — covering less severe breaches — can result in penalties of up to $2,000, while Tier 2 offences carry much heavier fines, reaching $54 million, depending on the seriousness of the case.

The Registration Authority also gains broader enforcement powers, including the ability to suspend, vary, or cancel licences, issue prohibition or disqualification orders, and publish public censures against repeat or serious offenders.

The updated rules also give the authority faster and more flexible tools to handle violations. The CEO of the Registration Authority can now act immediately in urgent situations, while investigators have expanded powers to gather information and conclude cases more efficiently.

In line with ADGM’s digital transformation, the new regulations allow notices, penalties, and appeals to be handled electronically — reducing delays and improving communication with registered firms.

The framework also introduces a formal settlement process, enabling companies to resolve issues before enforcement actions are finalised, promoting early compliance and cooperation.

Officials said the new system ensures “procedural fairness, clarity, and accountability” while aligning ADGM with global regulatory standards. Businesses operating in the financial centre now have a transparent view of how contraventions are handled — from investigation to resolution.

The Administrative Regulations 2025 and related amendments are now publicly available on the ADGM website.