Page 128 - Annual Report 2019

125 ANNUAL REPORT 2019 QFC REGULATORY AUTHORITY FINANCIAL STATEMENTS

12. Financial Penalties

2019 2018
USD ‘000 USD ‘000
Financial penalties on FAB (Note i) 54,870 -

Financial penalties on registered firms 499 -
55,369 -

Note (i)
Under the Financial Services Regulations (FSR), the QFC Regulatory The QFC Regulatory Authority filed a debt application on 9
Authority has the power to impose financial penalties where it September 2019 with the QFC Civil and Commercial Court
considers that a Person (as defined in the FSR) has contravened (the “Court”). The Court heard the matter, in February 2020
a relevant requirement set out in Article 84 (1) of the FSR. The and issued its judgement declaring the financial penalty with
principles to be followed by the QFC Regulatory Authority in interest as a debt payable to, and recoverable by, the QFC
determining the amount of any financial penalty to be imposed Regulatory Authority. The Regulatory Authority is taking the
in respect of such contraventions are set out in the QFC necessary steps to enforce the judgement, including obtaining
Regulatory Authority’s “Enforcement Policy Statement 2012”. information to (i) identify assets and the location of such assets
that are available to satisfy the judgement, and (ii) take specific
The QFC Regulatory Authority imposed a financial penalty of legal action to enforce payment against the assets of FAB.
QAR 200,000,000 on First Abu Dhabi Bank P.J.S.C (“FAB”). The
financial penalty was due for payment on 4 September 2019. No Since it has not been paid, the QFC Regulatory Authority is
payment was received from FAB. The FSR, article 59 (4) states that taking the steps necessary to collect the amount due as a
“any penalty that is not paid within the period stipulated by the debt against FAB’s assets within Qatar and internationally.
Regulatory Authority may on application to the Court be recovered The QFC Civil and Commercial Court has issued enforcement
by the Regulatory Authority as a debt”. In light of the fact that orders, including one to the Qatar Central Bank to assist
FAB did not appeal the Decision Notice, the financial penalty is the QFC Regulatory Authority in collection of the debt.
now an amount legally due and payable to the QFC Regulatory The QFC Regulatory Authority has also engaged an asset
Authority. If it is not paid, the QFC Regulatory Authority is entitled tracing firm to identify assets held by FAB internationally,
to take the steps necessary to collect the amount due as a debt. and engaged legal counsel to advise on debt recovery.