The Dubai Financial Services Authority (DFSA) has fined OCS International Finance Limited (OCS) $720,905 (Dh2.64 million) and its CEO, Christian Franz Thurner, $186,003 (Dh682,631) for regulatory breaches, including mismanaging $46 million (Dh168.82 million) in client funds and misleading both a bank and the DFSA. The fines were imposed following a 30% settlement discount.
Thurner has also been banned from holding any position in an Authorised Person, Designated Non-Financial Business or Profession, Reporting Entity, or Domestic Fund. He is also prohibited from performing financial service-related functions within the Dubai International Financial Centre (DIFC).
The DFSA investigation uncovered several violations by OCS, including:
- Mishandling $46 million in client funds before being authorised by the DFSA.
- Providing false documents related to these funds to a bank.
- Failing to keep client funds in a separate account and using them without authorisation.
- Submitting falsified documents to a bank to disguise the true nature of a financial arrangement.
- Submitting false information to the DFSA, including concealing Thurner’s prior convictions.
- Withholding bank statements and obstructing the DFSA’s investigation.
- Failing to meet DFSA’s regulatory reporting requirements.
Thurner was found to be directly involved in several of these breaches, further obstructing the DFSA’s investigation.
The DFSA stated that these actions compromised the integrity of the DIFC, a major financial centre in the region.
“The integrity of the DIFC is essential in maintaining investor confidence,” said Ian Johnston, Chief Executive of the DFSA. “Firms and individuals in the DIFC must adhere to the highest standards of conduct and integrity, especially when dealing with client funds.
“Our enforcement actions send a strong message that we will not tolerate misleading or obstructive behaviour, and we will take necessary steps to protect investors.”
