The DIFC has fined OCS International Finance Ltd AED 2.64M, and CEO Christian Thurner must pay an additional AED 682,631 after a 30% settlement discount.
The penalties follow a Dubai Financial Services Authority (DFSA) investigation that revealed OCS breached multiple DFSA rules, particularly in mismanaging AED 168.82M ($46M) of client funds. The company also faced charges for misleading both a bank and the DFSA.
Thurner cannot hold any executive or employee position in an authorised entity, designated non-financial business, reporting entity, or domestic fund. The authorities have barred him from performing any financial service-related functions within the Dubai International Financial Centre due to previous DFSA violations.
Ian Johnston, Chief Executive of the DFSA, emphasised that the integrity of the DIFC is vital for maintaining investor confidence. Firms and individuals in the DIFC must adhere to the highest standards of conduct and integrity, especially regarding client funds. Our enforcement actions convey a strong message that we will not tolerate misleading or obstructive behaviour and that we will take necessary steps to protect investors.
Key findings from the DFSA include that OCS mishandled approximately $46M in client funds before receiving DFSA authorisation. The company misled its bank with false documents related to client funds, failed to keep the funds in a separate client account, and misused them for unauthorised purposes. The company supplied the bank with misleading documents that obscured the true nature of the financial arrangements and submitted false information to the DFSA, including concealing Thurner’s previous convictions.
The DFSA noted that OCS and Thurner repeatedly failed to provide necessary bank statements and attempted to obstruct the investigation by withholding documents, while consistently failing to meet regulatory reporting requirements.
