"Dubai Financial Services" Bans a reinsurance broker from holding any position and fines him $139.7 thousand
Dubai, May 12 / WAM / The Dubai Financial Services Authority, the independent regulatory body for banking, financial services and markets in the Dubai International Financial Centre, imposed a fine of $139,722 (equivalent to 513,129 dirhams) on Wael Abdul Mohsen Abdul Latif Mohammed Amara, for engaging in misleading and deceptive behaviour.
The fine was reduced from the original amount of $285,149 (equivalent to about 1.04 million dirhams) as a result of the settlement he agreed to make with the Dubai Financial Services Authority, and after the authority reviewed the request submitted by him to reduce the amount of the fine as a result of financial hardship.
The Dubai Financial Services Authority decided, in addition to the financial fine imposed, to prevent him from holding any position, or working as an employee with any company licensed by it, and to prevent him from performing any function or activity related to the provision of financial services in or through the Dubai International Financial Center.
The aforementioned worked as a reinsurance broker, and also held a senior position in “Ed Broking MENA Limited,” and was responsible, by virtue of his position, for assisting the original ceding insurance companies (the company’s clients) in assigning risks to the reinsurance companies.
The Dubai Financial Services Authority had imposed a fine of US$455,176 on the company earlier this year, for committing similar violations and other violations related to the authority’s legislation.
The Dubai Financial Services Authority concluded that Wael Abdel Mohsen misled and deceived the original ceding insurance companies and reinsurance companies over a period of more than three years by submitting higher price offers for the insurance premiums of the original ceding insurance companies, and lower price offers for the insurance premiums of the reinsurance companies for the same operations, which led to the company keeping the difference as an additional brokerage commission, in addition to advising the reinsurance companies that certain deductions from the insurance premiums should be made, while the company kept those amounts. deducted as a brokerage commission, as well as providing one of the company’s clients with reinsurance documents that were manipulated to show higher premiums or lower brokerage commissions and discounts.
Alan Linning, Director General of the Enforcement Department of the Dubai Financial Services Authority, said that the authority expects all employees working in licensed companies to adhere to the highest standards of integrity in providing financial services in or through the Dubai International Financial Center, indicating that the aforementioned broker failed to meet these expectations by misleading his clients and his reinsurance companies in this way, and pointed out that this fine, in addition to the measures taken against him to prevent him from holding any position or practicing any function or activity in the center, reflects the seriousness of the violations committed. By him, and it aims primarily to deter any other persons or entities from engaging in any similar actions.
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