Dubai: The Dubai Financial Services Authority (DFSA) has imposed financial penalties against Alessandro Faro Trading Ltd (AFTL), a non-regulated Dubai International Financial Centre (DIFC) incorporated company, and Fius Capital Limited (FCL), an Authorised Firm.
The regulator imposed a penalty of $25,200 (Dh92,610) on AFTL, after a settlement discount. If not for the settlement, the DFSA would have imposed a penalty of $36,000 (Dh132,300).
Dubai's financial watchdog took action against AFTL for carrying on business as a dealer in precious metals and precious stones in or from the DIFC without being, or having ever been, registered with the DFSA as a Designated Non-Financial Business or Profession (DNFBP), as it was required to be.
“The DFSA notes that dealers in precious metals and precious stones are included in typical money laundering typologies and, by failing to register as a DNFBP, AFTL was not supervised by the DFSA in relation to the requirements in DFSA administered legislation, which created serious risks of money laundering in the DIFC,” it said in a statement on Wednesday. “However, the DFSA does not allege that AFTL engaged in money laundering.”
The DFSA also imposed a penalty of $11,340 (Dh41,650) after FCL agreed to settle, which led the DFSA to apply a settlement discount. The DFSA took action against FCL for its failure to, among other things, submit a number of regulatory returns by the specified deadlines despite a number of reminders. This included the failure to submit its annual AML Return.
“The DFSA has taken a zero-tolerance approach to failures to comply with anti-money laundering requirements in DFSA administered legislation,” said Ian Johnston, Chief Executive of the DFSA. “The DFSA will take appropriate action to ensure firms meet their obligations in this regard. The DFSA will take appropriate action against such breaches.”
