Dubai: Abu Dhabi's Abu Dhabi Global Market (ADGM) has fined Pyypl, a licensed money service provider operating in ADGM, $486,000 (Dh1,784,835). The penalty was imposed due to Pyypl's inadequate compliance with Anti-Money Laundering (AML) requirements and actions beyond its Financial Services Permission between March 2021 and November 2022.
The Financial Services Regulatory Authority (FSRA) found several AML shortcomings, including Pyypl's failure to update its AML business risk assessment, conduct necessary AML risk assessments and due diligence on customers, and maintain effective AML policies, procedures, systems, and controls for monitoring suspicious activities.
Additionally, from May 2021 to November 2022, Pyypl allowed customers to purchase insurance contracts from a third-party provider through its application, performing Insurance Intermediation without proper authorisation.
The FSRA’s review did not identify any instances of actual money laundering resulting from Pyypl’s AML systems and control failures, the regulator said in a statement on Wednesday.
Pyypl cooperated fully with FSRA's inquiries and remedied the identified issues, earning a 20 per cent penalty reduction for settling without dispute. Otherwise, the FSRA would have imposed a $607,500 (Dh2,231,044) financial penalty.
“The FSRA continues to actively support the national AML/CFT agenda,” said Emmanuel Givanakis, CEO of the FSRA. “The FSRA is committed to taking proactive steps to ensure that all regulated entities maintain high standards to combat financial crime and money laundering risks, as well as ensuring that regulated entities comply with the FSRA’s Rules and Regulations.
“The FSRA will not hesitate to take robust action to ensure firms comply fully with anti-money laundering requirements in the ADGM, and to ensure that authorised firms do not conduct Regulated Activities outside the scope of their licence,” he added.