The Dubai Financial Services Authority (DFSA) has imposed a fine on Arif Naqvi, founder of the collapsed private equity company Abraaj Group, almost $136 million and banned him from the emirate’s financial centre for “serious failings” with respect to the firm.
The Authority today announced its decision, saying Arif Naqvi has disputed the findings and that the parties would now present their cases to the Financial Market Tribunal (FMT).
Thus, the DFSA said the financial penalty will be deferred till the decision of the FMT, while the ban on activities at the Dubai International Financial Centre (DIFC) will remain enforced.
DFSA said Naqvi “was knowingly involved in misleading investors over the misuse of their funds by Abraaj Investment Limited (AIML), a Cayman Islands-registered firm not authorised by the DFSA”.
“The significant fine imposed on Mr Naqvi reflects the seriousness of these offences and is based on Mr Naqvi’s earnings from the Abraaj Group,” it said.
The DFSA also fined former Abraaj executive Waqar Siddique $1.2 million and banned him from the DIFC. Siddique has also disputed the DFSA’s actions and his fine has also been stayed pending a decision by the tribunal.
Siddique could not immediately be reached for comment. The UAE in recent years has been tightening regulations regarding financial crime and awaits a March decision on whether it will be added to a dirty money watchlist.
