Dubai Financial Services Authority Fines Vault Wealth Dh401,000 Over Unauthorised Transactions

The Dubai Financial Services Authority has issued a Dh401,000 ($109,200) penalty against wealth management services firm Vault Wealth for carrying out transactions without proper authorisation.

Vault Wealth offers financial services such as investment and credit advice along with deal arrangement. The company is incorporated at Abu Dhabi's ADGM and holds a license from its Financial Services Regulatory Authority. Nevertheless, the DFSA stated on Thursday that Vault Wealth has never received authorisation to deliver financial services in or from Dubai International Financial Centre.

The penalty originates from activities between February and May 2024, when employees of Vault Wealth operated out of the offices belonging to a related DIFC entity named Vault Technology, an unregulated firm under the DFSA. During this timeframe, potential clients visited the DIFC office, where Vault Wealth delivered financial advice and helped clients onboard onto an investment platform.

Clients also received know-your-customer documentation to facilitate the creation of investment accounts. Alan Linning, managing director for enforcement at the DFSA, stated that authorisation by another regulator does not grant a firm permission to conduct financial services within or from DIFC. Firms are required to secure appropriate DFSA authorisation prior to engaging in regulated activities there.

The original penalty of Dh573,000 was decreased by 30 per cent following a settlement agreement reached with Vault Wealth. Mr Linning emphasized that proper authorisation for financial transactions remains essential to maintaining the integrity of DIFC's regulatory framework and protecting users of financial services within the centre.

Regulatory authorities across the UAE maintain strict vigilance in penalizing entities that violate rules as part of broader initiatives to safeguard the financial system's reliability and integrity. Mr Linning concluded that the DFSA's enforcement action highlights the agency's commitment to intervening when firms operate outside the regulatory perimeter, applying serious sanctions to deter similar conduct.