DOHA: The QFC Regulatory Tribunal has upheld QFC Regulatory Authority's disciplinary action against two former employees of Al Mal Bank.
The Regulatory Authority had imposed a penalty of $100,000 on Seifeldin Abdelkareem, Al Mal Bank's former Chief Financial Officer after it found he had seriously flouted the Regulatory Authority's rules and regulations. The Authority had also prohibited Abdelkareem from performing any function, for or being employed by, any authorised firm in the QFC.
The Authority imposed a penalty of $20,000 on Kashif Chaudhury, the bank's First Vice President, Compliance. He was also banned from performing the Compliance Oversight Function for any authorised firm in the QFC for a period of 12 months.
The decisions were announced by a three-member panel of the Tribunal headed by Michael Thomas (chairman), Francois Gianviti and Lawrence Li.
The disciplinary actions relate to failings by the two officials in the performance of their duties while serving as officers of Al Mal, which was placed in liquidation in June 2010. The Regulatory Authority found that both the officials committed serious contraventions of the Regulatory Authority's rules and regulations and provisions of the Financial services Regulations. Abdelkareem knowingly submitted inaccurate and misleading information to the Regulatory Authority about regulatory requirements at Al Mal which resulted in the submission of false information to the Regulatory Authority, and failed to disclose a bank account, of which he was aware, in Al Mal's accounting records. Chaudhury recklessly prepared and submitted Board minutes of Al Mal to the Regulatory Authority which were false or misleading.
The Regulatory Authority's decisions were appealed to the Tribunal by Abdelkareem and Chaudhury. After independently considering the evidence, the Tribunal confirmed the Regulatory Authority's findings and upheld the actions taken against both Abdelkareem and Chaudhury. Tribunal was extremely critical of the behavior of both Abdelkareem and Chaudhury, the Authority said yesterday.
Michael Ryan, CEO of the Regulatory Authority, welcomed the Decisions of the Tribunal. "The action taken by the Regulatory Authority, and the decisions by the Tribunal to uphold it, underscores the high standards expected of officers of financial institutions operating in the QFC. It is not appropriate for persons holding management positions to turn a blind eye to misconduct or hide behind the actions of more senior staff. The Regulatory Authority expects employees holding management positions in the QFC to take an active role in ensuring that they and their firm comply with regulatory obligations", Ryan said.
© The Peninsula 2012
