(MENAFN- The Peninsula) The Peninsula
The regulator of the Qatar Financial Center said on Sunday it had fined First Abu Dhabi Bank QR200 million ($54.93 million) for obstructing an investigation into suspected market manipulation.
The QFC Regulatory (QFCRA) Authority said in a statement it had started an investigation in March 2018 into suspected manipulation by FAB of the Qatari Riyal, Qatari government securities and related financial instruments.
The financial penalty imposed on FAB reflects the gravity and seriousness of the breaches of regulatory requirements caused by the deliberate and intentional steps taken by FAB to obstruct the QFCRA's investigation, the statement said.
In connection with that investigation, the QFCRA required FAB to provide copies of the relevant trading records and related documentation it held to enable the QFCRA to examine the facts and properly conduct its investigation.
FAB failed to comply with the notice to produce the required documents.
As a result of FAB's failure to comply with the notice to produce and its unwillingness to engage in an open and constructive manner with the QFCRA, the QFCRA initiated proceedings on 29 July 2018 in the QFC Civil and Commercial Court to require compliance by FAB with the documentation request. On 18 November 2018, the Court of First Instance ordered FAB to comply, which FAB subsequently appealed to the Appellate Division of the Court. On 13 May 2019, FAB's appeal was dismissed by the Appellate Division and the order of the Court of First Instance was upheld requiring FAB to produce the required documents.
Notwithstanding the Court's orders, FAB has continued in its failure to comply with the QFCRA's statutory production requirements and the orders of the Court, and by doing so continues to obstruct the QFCRA's investigation.
The QFCRA's investigation will continue notwithstanding FAB's obstruction and lack of cooperation to date, and FAB may be subject to additional disciplinary action in the future if such action is warranted by the findings of the market manipulation investigation, the statement added.
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