DFSA fines Vault Wealth Dh401,000 for providing unauthorised transactions

The Dubai Financial Services Authority (DFSA) has issued a Dh401,000 fine to wealth management firm Vault Wealth for providing unauthorized transactions. The firm, based in Abu Dhabi's ADGM and licensed by its Financial Services Regulatory Authority, lacked DFSA authorization to offer financial services in Dubai International Financial Centre (DIFC).

Between February and May 2024, Vault Wealth employees operated from Vault Technology's DIFC offices, conducting financial advice and assisting clients with investment account creation. However, this operation was not regulated by the DFSA. DFSA managing director for enforcement, Alan Linning, emphasized that authorization by another regulator does not grant permission to conduct financial services in or from DIFC.

Firms must obtain DFSA authorization before engaging in regulated activities within the center. The fine was reduced by 30% following a settlement agreement. Financial regulators in the UAE have been actively enforcing regulations to maintain the system's integrity and reliability, as seen with the UAE Central Bank's penalties for lenders violating anti-money laundering rules.

The DFSA's action demonstrates their commitment to intervening when firms operate beyond the regulatory boundary and imposing sanctions that reflect the severity of such conduct.