A money service provider operating in the Abu Dhabi Global Market (ADGM) has been fined over AED 1.78 million ($486,000) for inadequate anti-money laundering (AML) controls.
The Financial Services Regulatory Authority (FSRA) of ADGM said that during the period from March 2021 to November 2022, the firm Pyypl failed to ensure that its AML business risk-assessment was up to date and did not carry out required due diligence on its customers.
In addition, the authority found that the firm had made arrangements for its customers to buy contracts of insurance from a third-party provider through an application. In doing so, Pyypl was found to have conducted the Regulated Activity of Insurance Intermediation without the appropriate authorisation.
The FSRA added that its review did not identify any instances of actual money laundering as a result of Pyypl’s AML control failures, and the company's senior management cooperated fully with the FSRA.
Pyypl did not dispute the findings and agreed to settle at the earliest opportunity, which meant that it qualified for a discount of 20 per cent on the financial penalty, which was originally AED 2.23 million ($607,500).