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ADGM’s Registration Authority imposes $39,000 penalties against Amicorp and its former account manager

Amicorp failed to maintain proper compliance arrangements, systems and controls, to monitor its employees

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The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) has taken enforcement actions against Amicorp Advisory Limited (Amicorp), an ADGM licenced company service provider (CSP) and its former account manager Dhanishta Jhamna-Chutooree (Chutooree) for a number of breaches of RA administered legislation.

Amicorp, through Chutooree, was found to have provided a falsified document to the RA as part of an incorporation application on behalf of its client.

Further, Amicorp failed to maintain proper compliance arrangements, systems and controls, to monitor its employees.

Chutooree, during the material time, was employed by Amicorp and was found to have falsified the document submitted to the RA, deleted key evidence once the RA commenced its investigation and provided false information to the RA investigators.

The RA imposed the following financial penalties:

> $18,000 on Amicorp for providing false information to the RA and contravention of CSP conditions of licence; and

> $21,000 on Chutooree for providing false information to the RA, destroying a document that is relevant to an investigation and providing false information in purported compliance with a requirement imposed by the RA investigators.

Being granted a CSP licence at ADGM carries with it certain obligations and responsibilities towards the RA and the CSP’s clients. The RA fully expects ADGM-licensed CSPs such as Amicorp to ensure that information provided to the RA is accurate and truthful as well as to have adequate systems and controls to prevent falsified documents from being created or submitted to the RA. Furthermore, CSPs must take all reasonable steps to ensure that their employees are honest and cooperative in their dealings with the RA.

Hamad Sayah Al Mazrouei, chief executive officer of the RA, said ADGM-licenced CSPs play a key role as corporate gatekeepers, in enhancing investor confidence, providing high-quality services and preserving ADGM’s reputation.

"Submitting falsified documents not only falls far below the standard expected from ADGM CSPs and their employees, but it is also a serious contravention of ADGM regulations," he said.

On 23 February 2023, he said ADGM issued amendments to its Company Service Provider Regulatory Framework to further strengthen and maintain a robust regulatory regime for the provision of company services in ADGM.

"The RA will prioritise taking all necessary actions to ensure full compliance with its enhanced Company Service Provider Regulatory Framework. This enforcement action emphasises the important role CSPs play in ADGM,” he said.

— muzaffarrizvi@khaleejtimes.com

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