The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has fined 23 entities a total of Dh610,000 for breaching the Common Reporting Standard (CRS) Regulations 2017 and the Foreign Account Tax Compliance Act (FATCA) Regulations 2022.
The action targets non-compliance with frameworks that mandate financial institutions to report information on foreign account holders to the UAE authorities, which is then shared with overseas jurisdictions under automatic exchange agreements. These frameworks aim to curb cross-border tax evasion by ensuring transparency in financial reporting.
The FSRA identified multiple violations, including the failure to file annual CRS and FATCA returns, inadequate due diligence, incomplete or inaccurate reporting, and the absence of valid self-certification from clients. Some entities also failed to conduct risk assessments as required under the regulations.
The fines are part of ADGM’s broader enforcement strategy to meet international tax cooperation commitments. According to the OECD, jurisdictions participating in the CRS regime exchanged information on over 111 million financial accounts in 2023, covering assets worth approximately EUR 11 trillion.
Emmanuel Givanakis, CEO of the FSRA, said the penalties reflect ADGM’s obligation to ensure compliance with global reporting norms. He added that maintaining the integrity of the UAE’s financial system requires strict adherence to international standards.
A list of the sanctioned entities and details of the penalty notices are published on the ADGM website.
