Page 77 - Annual Report 2020
P. 77
/ 72 QF CR A ANNU AL REP OR T 2020
Meetings and Conferences Enforcement Enforcement Actions in 2020
IOSCO Africa and Middle East Enforcement is a necessary component of an effective Horizon Crescent Wealth LLC for Disciplinary action against David
Regional Committee (AMERC) regulatory regime and enables the Regulatory serious legal and regulatory breaches Russell, former CEO of Guardian Wealth
Authority to take appropriate enforcement action
Management Qatar LLC (in liquidation)
Qatar, January 2020 where breaches of the rules and regulations occur. In March 2020, the Regulatory Authority imposed a fine
The Regulatory Authority has the requisite powers of QAR 30 million on Horizon Crescent Wealth LLC (HCW) In August 2019, the Regulatory Authority took
Hosted by the Qatar Financial Markets Authority to act swiftly, decisively, and in a manner that is as a result of serious legal and regulatory breaches. The disciplinary action against the former CEO of Guardian
consistent with its stated policies and procedures, to Regulatory Authority identified serious deficiencies at Wealth Management Qatar LLC (in liquidation) (GWMQ),
Focus: Challenges and opportunities for building achieve an effective and proportionate outcome. HCW relating to its customer due diligence and the due Mr David Russell. Following successful actions against
sustainable capital markets, development of FinTech and diligence conducted by HCW on its customers’ source GWMQ and individual board members of GWMQ
emerging risks and opportunities in the AMERC region. of funds and the nature of their economic activities. for contraventions relating to compliance with the
Summary Statistics 2020
These requirements, which are set forth in the Anti- implementation of its Anti-Money Laundering and
Money Laundering and Combating Terrorist Financing
• Enforcement actions taken against 4 QFC firms Combating Terrorist Financing policies, procedures,
IOSCO Annual Conference Rules, are essential to protecting the QFC from abuse
and individuals, including 3 financial penalties, systems and controls and AML/CFT programme as
by illicit finance. HCW took deliberate steps to mislead required by the AML/CFT Rules and other issues
Virtual, November 2020 1 prohibition order, 1 settlement and 4 other
the Regulatory Authority regarding its activities and
enforcement actions of regulatory compliance. Mr Russell was fined
marketed itself as providing asset management services QAR 182,000 and prohibited for three-years from
Hosted virtually by IOSCO • 5 investigations commenced related to individuals
when it was not authorised to do so by the Regulatory
• 2 investigations commenced related to QFC firms carrying out a controlled function in the QFC.
Authority, which is a violation of the Qatar Financial
Focus: Priority issues facing securities market regulators • Total of 7 Regulatory Authority
Centre Law and the QFC Financial Services Regulations. Mr Russell appealed the Regulatory Authority’s
and supervisors. In addition, the 15th Joint FSI/IOSCO investigations commenced
decision and the QFC Regulatory Tribunal (Tribunal)
Conference on Securities Trading Issues and Market
dismissed Mr Russell’s appeal and upheld the action
Infrastructure was held with the focus on COVID-19, HCW – an example of close
taken by the Regulatory Authority. The Tribunal noted
digital innovation and financial market infrastructure,
cooperation amongst key Qatari that the financial penalty and prohibition imposed
and on remaining challenges in transitioning away
law enforcement stakeholders by the Regulatory Authority was appropriate given
from IBORs and the progress on LIBOR “end game.”
Mr Russell’s conduct but, given issues of financial
The Regulatory Authority expressed its gratitude for the
hardship encountered by Mr Russell and the exceptional
close cooperation and significant assistance from the
circumstances related to the COVID-19 pandemic in
Qatar Central Bank, the Qatar Financial Information Unit,
2020, the Tribunal commuted the financial penalty.
and the Public Prosecution Office during the course of
the HCW investigation. The cooperation and assistance
provided by each of the authorities was instrumental
in ensuring a successful outcome to the investigation.
T ABLE OF C ONTENT S
