Dubai, UAE: The Dubai Financial Services Authority (DFSA) published its Decision Notice against Mr Waqar Siddique (Mr Siddique) in January 2022 for serious failings in respect of the Abraaj Group. Mr Siddique was fined USD 1,150,000 (AED 4,223,375) and prohibited and restricted from performing any function in or from the DIFC. Mr Siddique referred the DFSA’s findings in the Decision Notice for review by the Financial Markets Tribunal (FMT), an independent appeal tribunal.
On 14 October 2022, as a result of settlement with the DFSA, Mr Siddique withdrew his FMT reference and therefore will not contest the DFSA’s findings as set out in the Decision Notice dated June 2021. The settlement included arrangements to secure payment to the DFSA, notwithstanding the fact that Mr Siddique has not been a resident in the UAE for a number of years.
Mr Siddique was a member of the Abraaj Group’s senior management team and was also an Authorised Individual as ACLD’s Licensed Director. In those roles, Mr Siddique was knowingly involved in certain Abraaj Investment Management Limited (AIML) and Abraaj Capital Limited (ACLD) breaches.
Mr Siddique was knowingly involved in AIML misleading and deceiving investors over the use of their monies within funds managed by Abraaj, including by being a signatory to loan agreements used to produce misleading bank balance confirmations and misleading financial statements. Mr Siddique was knowingly involved in ACLD’s contraventions of not maintaining its Capital Requirements, as over a five-year period he authorised the majority of temporary cash transfers at quarterly reporting period ends. In doing so, Mr Siddique also failed to act with integrity in carrying out his Licensed Function at ACLD.
Ian Johnston, Chief Executive of the DFSA, said: “The DFSA fined and banned Mr Siddique for his knowing involvement in serious wrongdoing at Abraaj and to act as a deterrent against misconduct by senior management. It continues to be a priority of the DFSA to hold senior individuals to account. As with the former Abraaj CFO, Mr Ashish Dave, we have pursued payment of the fine even though the individual and his assets are no longer in the UAE. This demonstrates the DFSA’s commitment to pursuing action against subjects and collecting the fines imposed on them, irrespective of their locations.”
A copy of the DFSA's Decision Notices can be found in the Regulatory Actions section of the DFSA website.
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For further information please contact:
Corporate Communications
Dubai Financial Services Authority
Level 13, The Gate, West Wing
Dubai, UAE
Email: DFSAcorpcomms@dfsa.ae
www.dfsa.ae
About Dubai Financial Services Authority (DFSA)
The Dubai Financial Services Authority (DFSA) is the independent regulator of financial services conducted in and from the Dubai International Financial Centre (DIFC), a purpose built financial free zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, crowdfunding platforms, money services, an international equities exchange and an international commodities derivatives exchange. In addition to regulating financial and ancillary services, the DFSA is responsible for administering Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) legislation that applies to regulated firms and Designated Non-Financial Businesses and Professions in the DIFC. Please refer to the DFSA's website for more information.
Ian Johnston was appointed Chief Executive of the DFSA in September 2022. He previously served as the DFSA’s Chief Executive from 2012-2018. A lawyer by background, Ian had several senior executive roles in the private sector, including as CEO of one of Australia’s major trustee companies. The second half of his career being in regulation, Ian was an Executive Director at the Australian Securities and Investments Commission; Special Advisor at the Hong Kong Securities and Futures Commission; and since 2019, consulting to and advising a number of financial regulators in Europe, Asia and the Middle East.
