The Dubai Financial Services Authority issued a Decision Notice against Al Ramz Capital LLC, a DFSA Recognised Member, finding that it failed to report suspicious transactions and imposing a financial penalty of USD 25,000 (AED 91,813). Al Ramz has disputed the findings and referred the Decision Notice to the Financial Markets Tribunal, meaning the DFSA decision is provisional. The misconduct relates to wash trades executed through Al Ramz’s online trading platform where there was no change in ultimate beneficial ownership, which can create a misleading impression of the supply, demand, or price of an investment. The wash trades caused a temporary 27% spike in the share price on the last day of the trades, and Nasdaq Dubai flagged the activity to Al Ramz as a suspected wash trade. Despite this, Al Ramz did not report the suspicious transactions to the DFSA as required under Recognition Rule 3.4.5(1). The Financial Markets Tribunal will determine what, if any, action is appropriate, and may confirm, vary, or overturn the DFSA’s decision. The DFSA indicated it does not intend to make further public comment until the Tribunal’s review is complete, except to correct inaccuracies.
Dubai Financial Services Authority 2025-01-24
Dubai Financial Services Authority fines Al Ramz Capital for failing to report suspected wash trades as case goes to the Financial Markets Tribunal
The Dubai Financial Services Authority issued a Decision Notice against Al Ramz Capital LLC for failing to report suspicious transactions, imposing a USD 25,000 penalty. The case involves wash trades that temporarily spiked share prices by 27%, flagged by Nasdaq Dubai but unreported by Al Ramz. Al Ramz disputes the findings, referring the matter to the Financial Markets Tribunal, rendering the DFSA decision provisional.