DFSA decision to fine Al Ramz Capital LLC for failure to report suspicious transactions referred to the Financial Markets Tribunal

Dubai, UAE, 24 January 2025: The Dubai Financial Services Authority (DFSA) today published a Decision Notice against Al Ramz Capital LLC (Al Ramz), a DFSA Recognised Member, recording a DFSA finding that Al Ramz failed to report suspicious transactions and imposing a financial penalty of USD 25,000 (AED 91,813) on Al Ramz.

Al Ramz disputes the DFSA’s findings and has referred the Decision Notice to the Financial Markets Tribunal (FMT). The DFSA’s decision is therefore provisional and reflects the DFSA’s current understanding of Al Ramz’s conduct.

The FMT will determine what, if any, is the appropriate action for the DFSA to take. The DFSA’s decision may be confirmed, varied, or overturned as a result of the FMT’s review.

Trades were executed through Al Ramz’s online trading platform where there was no change in the ultimate beneficial ownership, known as a “wash trade”. A wash trade is a form of potential Market Abuse because it can create a misleading impression of the supply, demand, or price of an investment. In this case, the wash trades caused a temporary spike of 27% in the share price on the last day of the trades.

The trades were executed on the exchange of Nasdaq Dubai, who flagged it to Al Ramz as a suspected wash trade. Despite this, Al Ramz failed to report the suspicious transactions to the DFSA as required under Recognition Rule 3.4.5(1).

The DFSA emphasises the importance of recognised members having robust surveillance systems and promptly reporting any suspicious trading activity to the DFSA when required. This action underscores the regulator's commitment to maintaining the integrity of financial markets and protecting investors from potentially abusive practices.

A copy of the DFSA's Decision Notices can be found in the Regulatory Actions section of the DFSA website.

The DFSA does not intend to make any further public comment until the FMT’s review is complete, except as necessary to correct any inaccuracies. Information about pending FMT matters, including details of any public hearings, can be found on the FMT section of the DFSA website.