Tuesday, 30 July 2019

#Dubai Financial Services Authority Fines Two #Abraaj Group Companies A Total Of USD 315 Million For Deceiving Investors And The Regulator

Dubai Financial Services Authority Fines Two Abraaj Group Companies A Total Of USD 315 Million For Deceiving Investors And The Regulator:

The Dubai Financial Services Authority (DFSA) has today imposed financial penalties of USD 299,300,000 (AED 1,098,431,000) and USD 15,275,925 (AED 56,062,645) on Abraaj Investment Management Limited (AIML) and Abraaj Capital Limited (ACLD), respectively.

The DFSA investigation, which commenced in January 2018, was complex and spanned multiple jurisdictions, and found that AIML, a Cayman Islands company now in provisional liquidation:



  • carried out unauthorised financial services, including fund management, within and from the DIFC; 
  • actively misled and deceived investors in Abraaj funds over an extended period; 
  • misused investors’ monies in various funds to meet its own operating and other expenses, which included payments to entities connected to some members of AIML staff, and to meet ever-increasing cash shortfalls; and 
  • concealed this by providing misleading financial information to investors and making false statements about the use of money drawn down from investors and distributions.

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