The Dubai Financial Services Authority (DFSA) has imposed a fine of AED 367,000 ($ 100,000) on Vedas International Marketing Management (Vedas Marketing).
The company was fined for breaching the following articles of Regulatory Law DIFC Law No. 1 of 2004:
- Article 41A (1) - for unauthorised promotion of Multibank Group's financial services to persons in the DIFC;
- Article 41B (1)(a) - for misleading activities.
On 3 May 2024, the DFSA issued a Penalty Notice to Vedas Marketing, in which it described the reasons and the penalty amount.
The DFSA has the authority to impose a fine it considers appropriate for a violation with an explanation of reasons (Article 90(2)(a) Regulatory Law DIFC Law No. 1 of 2004).
Vedas Marketing had an IB Agreement with MultiBank BVI Group, under which it advertised financial products and services. In doing so, Vedas Marketing provided information that MultiBank Group companies were regulated by the DFSA, whereas none of them had a licence from the DFSA.
On 2 June 2024, Vedas Marketing attempted to appeal the DFSA Notice and submitted a claim to the Financial Markets Tribunal (FMT). The...