Abu Dhabi company fined AED 2 million for breaching AML requirements

Financial Services Regulatory Authority (FSRA) of the ADGM free zone imposed a fine of AED 1,850,940 on Aarna Capital Limited (ACL) company for breaching ADGM Anti-Money Laundering and Sanctions Rules and Guidance 2023 (AML Rules).

FSRA's investigation did not uncover any actual money laundering. 

However, the company violated the following requirements:

- failed to ensure that its procedures comply with the AML Rules;
- failed to conduct AML risk assessments and assign appropriate ratings to a number of its customers;
- failed to maintain required customer due diligence records;
- did not ensure that information on customer due diligence measures was assessed at a frequency relevant to the customer's risk rate;
- failed to monitor all customer deposit and withdrawal transactions.

FSRA reduced ACL's fine by 20% for cooperation during the investigation and agreement to correct the violations. Otherwise, ACL would have had to pay a fine of AED 2,313,675.

UAE, Abu Dhabi - 23 December 2024
Original article: ADGM