SCA fines firm AED 5 million, refers case to prosecution

July 24, 2025 / 7:40 PM

Sharjah 24 – WAM: The Securities and Commodities Authority (SCA) has imposed a record AED 5 million fine on a licensed company and referred the case to the Public Prosecution. This action reflects a firm stance on maintaining market integrity and ensuring regulatory compliance.

Violations of AML and Counter-Terrorism Financing Laws

The company was found to have violated anti-money laundering (AML) laws, counter-terrorism financing regulations, and measures concerning the funding of illicit organizations.

Deceptive practices uncovered

An investigation revealed that the company, in collaboration with an overseas firm, misled investors by falsely claiming that the foreign entity was licensed by the SCA. The intention was to misappropriate client funds under false pretenses.

Commitment to legal and regulatory standards

The SCA’s decision to refer the case to judicial authorities highlights its dedication to transparency and enforcement of high regulatory standards.

Reinforcing oversight and compliance

This case reinforces the SCA's commitment to deterrence, risk-based supervision, and strict compliance, aligning with international best practices and supporting the UAE’s status as a trusted global financial hub.