Abu Dhabi Company and Director Fined $32,000 for False Information and Document Concealment

The Abu Dhabi Global Market’s (ADGM) Registration Authority (RA) has imposed fines totaling $32,000 (AED 118,500) on a company and its director for providing false information and concealing documents, authorities announced on Friday.

Avante Limited, an ADGM-registered entity, and its director, Khaldoon Bushnaq, faced penalties following an investigation into their conduct. The company was fined $16,000 (AED 58,700), while Bushnaq received a separate fine of $16,300 (AED 59,800). Additionally, Avante was ordered to pay $10,000 (AED 36,700) to cover the RA’s investigation costs.

Investigation Findings

The RA launched the investigation after discovering that Avante had submitted a document containing a falsified stamp and authentication code, purportedly issued by the RA, to a UAE-based bank.

During the probe, the RA determined that Avante had provided false and misleading information. It also found that Bushnaq had concealed documents and failed to take necessary measures to prevent the falsification of company records.

“These are serious contraventions of ADGM’s commercial legislation,” the RA said in a statement. “The conduct of Avante and Bushnaq also adversely affected our investigation, causing the RA to incur increased and otherwise unnecessary costs.”

Accountability and Penalties

The RA emphasized its commitment to upholding transparency and cooperation in its dealings with licensed entities. “The RA has little tolerance for those who obstruct or hinder our investigations. It is essential that licensed persons engage with the RA in a cooperative and transparent manner,” the statement added.

Avante and Bushnaq agreed to settle the case. As part of the settlement, the RA applied a 20% discount to the fines, reflecting the resolution’s cooperative nature.

ADGM’s Jurisdiction

The ADGM, a financial free zone governing Al Maryah Island and Al Reem Island in Abu Dhabi, plays a critical role in maintaining regulatory compliance within the emirate. It oversees the activities of entities registered under its jurisdiction, ensuring adherence to commercial laws and regulations.

The RA’s actions underline its firm stance against violations of its commercial legislation and its determination to safeguard the integrity of Abu Dhabi’s financial free zones.