The Registration Authority (RA) of Abu Dhabi Global Market (ADGM )has taken action against AmiCorp Advisory Limited (AmiCorp), an ADGM licensed company service provider, and its former account manager, Dhanishta Jhamna-Chutooree, for several violations of the RA’s administered regulations.
Amicorp, through Chutooree, was found to have provided a falsified document to the RA as part of an incorporation application on behalf of its client.
Furthermore, Amicorp failed to keep up with necessary compliance procedures, systems, and controls to monitor its workers.
Chutooree, during the material time, was employed by Amicorp and was found to have falsified the document submitted to the RA, deleted key evidence once the RA commenced its investigation, and provided false information to the RA investigators.
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Financial penalties
The RA imposed the following financial penalties:
- $18,000 on Amicorpfor providing false information to the RA and contravention of CSP conditions of license; and
- More than $21,000 on Chutooree for providing false information to the RA, destroying a document that is relevant to an investigation, and providing false information in purported compliance with a requirement imposed by the RA investigators.
Obligations and responsibilities
Being granted a CSP license at ADGM carries with it certain obligations and responsibilities towards the RA and the CSP’s clients. The RA fully expects ADGM-licensed CSPs such as Amicorp to ensure that information provided to the RA is accurate and truthful as well as to have adequate systems and controls to prevent falsified documents from being created or submitted to the RA. Furthermore, CSPs must take all reasonable steps to ensure that their employees are honest and cooperative in their dealings with the RA.
Hamad Sayah Al Mazrouei, chief executive officer of the RA, said ADGM-licenced CSPs play a key role as corporate gatekeepers, in enhancing investor confidence, providing high-quality services, and preserving ADGM’s reputation.
“Submitting falsified documents not only falls far below the standard expected from ADGM CSPs and their employees, but it is also a serious contravention of ADGM regulations,” he said.
$4.76 million
In November 2022, the Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA) imposed a $4.76 million penalty and prohibition order against investment management company Elia Investments and Babar Abbas, the organization’s sole shareholder and former director.
The FSRA found that Elia had “carried on the regulated financial services activity of providing credit in [the] ADGM on an unauthorized basis” between July 2019 and June 2021, the regulator said.
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