The Dubai Financial Services Authority (DFSA) has levied a substantial fine of Dh5,023,375 on R.J. O’Brien (Mena) Capital Limited, a financial services firm, for failing to meet essential compliance regulations. The fine is a result of the company’s insufficient planning and analysis in compliance systems, particularly after it acquired an additional brokerage.
Investigations revealed that the senior management of R.J. O’Brien (Mena) was aware of the shortfall in compliance resources but did not take adequate measures to address the issue. Despite this, the DFSA acknowledged that there was no evidence suggesting the firm intentionally violated the law.
In response to the violations, the company has agreed to rectify the deficiencies in its systems. It plans to hire an external compliance expert to ensure that all necessary remediation is effectively implemented. This commitment to improvement led to a reduction in the initial fine, which was set at Dh10,251,789.
Patrick Meaney, the Head of Enforcement at the DFSA, emphasized the importance of compliance in the financial sector.
He stated, “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.”