Dubai cracks down: Financial firm fined Dh5 million for compliance lapses

• R.J. O’Brien (Mena) Capital Limited was fined Dh5,023,375 by DFSA.
• Senior management didn’t address compliance resource deficiencies.
• The initial fine of Dh10,251,789 was reduced due to the commitment to rectify issues.

A company that disregarded compliance system laws was fined Dh5,023,375 by the Dubai Financial Services Authority (DFSA).

It was discovered that the company, R.J. O’Brien (Mena) Capital Limited, had broken the following rules:

• It hadn’t done enough research and planning to make sure it could continue to meet its regulatory requirements after acquiring another brokerage.
• Despite being aware of the deficiency in compliance resources, senior management did not sufficiently address it.

The DFSA, however, was unable to uncover any proof that the company intentionally broke the law. The authority also noted that the company had committed to fixing the issues with its systems and hiring an outside compliance specialist to help and confirm that the required fixes had been carried out.

The Dh10,251,789 fine, which was initially higher, was decreased in light of this.

Patrick Meaney, Head of Enforcement of the DFSA, said: “Authorised firms must ensure that they have adequate compliance and other resources to be able to comply with their legal and regulatory obligations. Compliance is not an incidental cost of doing business; it is a critical function that must be adequately resourced in terms of both number and quality of staff.”

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