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 DFSA fined AFTL €25,200 (AED 92,610), after a settlement discount reducing the penalty from $36,000 (AED132,300).
The DFSA 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 highlighted 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.
However, the DFSA said it did not allege that AFTL engaged in money laundering.
The DFSA imposed a financial penalty of $11,340 (AED 41,650) after FCL agreed to a settlement discount discounted from $32,400 (AED 119,000).
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.
Ian Johnston, chief executive of the DFSA, said: "The DFSA has taken a zero-tolerance approach to failures to comply with anti-money laundering requirements in DFSA administered legislation. The DFSA will take appropriate action to ensure firms meet their obligations in this regard. The DFSA will take appropriate action against such breaches."
