ADGM Registration Authority Imposes $3.6 Million In Fines On AC Holding For Licence Violations

The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) has completed an investigation into AC Holding Limited, a Special Purpose Vehicle (SPV), and its sole shareholder and director, Christopher Flinos. The inquiry revealed that AC Holding misused its ADGM SPV commercial licence by acting as an investment company offering financial services and conducting cryptocurrency-to-fiat currency transactions.

AC Holding also submitted false annual accounts for the years 2019 to 2022. The RA discovered that Christopher Flinos engaged in fraudulent trading activities. These included unlicensed cryptocurrency conversions and misleading several parties about these transactions. Additionally, he facilitated the falsification of numerous company documents to maintain bank accounts fraudulently.

The RA imposed financial penalties totalling $3,615,000. This includes $15,000 against AC Holding for exceeding its licence scope under ADGM Commercial Licensing Regulations 2015. A further $300,000 was levied for filing false annual accounts and engaging in fraudulent schemes, violating ADGM Companies Regulations 2020. Christopher Flinos faces a $3.3 million penalty for providing false information and document falsification.

Christopher Flinos has been disqualified from serving as a director in any ADGM-based company for the maximum period of 15 years. The RA deemed him unfit due to his deliberate misuse of AC Holding’s passive SPV commercial licence as a payment facilitator and his involvement in fraudulent activities.

Hamad Sayah Al Mazrouei, CEO of ADGM Registration Authority, stated, "Maintaining business integrity and safeguarding business confidence in ADGM are at the forefront of the Registration Authority’s objectives. We remain committed to preventing and deterring conduct that may harm businesses, their clients and investors."

The RA is dedicated to taking effective disciplinary actions when non-compliance is detected. This includes banning individuals who pose risks to investors from holding leadership roles within ADGM companies. Such measures aim to protect participants in the ADGM environment.

The investigation highlights the importance of adhering to regulatory standards within financial markets. It underscores the RA's role in ensuring compliance and maintaining trust among businesses operating in ADGM.

With inputs from WAM