The Dubai Financial Services Authority (DFSA) has levied a financial penalty of USD 454,367.05 against HAYMAN-WOODWARD GLOBAL MOBILITY SERVICES (DIFC) LTD. (HWW DIFC) for operating as a company service provider without the mandatory registration as a Designated Non-Financial Business or Profession (DNFBP) within the Dubai International Financial Centre.
- Penalty Amount: USD 454,367.05 (AED 1,668,662.99)
- Original Fine (Pre-Settlement Reduction): USD 522,047.05 (AED 1,917,217.79)
- Settlement Discount: 30%
- Violation Period: August 2018 to February 2025
- Clients Served Without Registration: 71 clients
HWW DIFC, incorporated in the DIFC with listed activities in management consultancies and document clearing services, breached Article 71A(1) of the Regulatory Law 2004 by providing company service provider services without obtaining the required DNFBP registration. The regulator determined that between August 2018 and February 2025, the firm provided CSP services to 71 clients and executed agreements with three free zone entities outside DIFC to facilitate company setup and related services. The firm agreed to settle the matter, leading the DFSA to reduce the penalty from its original USD 522,047.05 assessment.
The DNFBP regime is a key component of the DFSA’s framework for mitigating money laundering and other financial crime risks within the DIFC. Businesses that provide company service provider and other DNFBP services can present elevated financial crime risks and are therefore subject to appropriate regulatory oversight and supervision. Registration as a DNFBP enables the DFSA to monitor these activities and ensure that appropriate safeguards are in place. When a firm operates without the required registration, it undermines that regulatory framework and impairs the DFSA’s ability to supervise and mitigate those risks effectively. The DFSA has zero tolerance for breaches that compromise the integrity of its anti-money laundering regime and will take appropriate enforcement action to uphold those important protections.
– Alan Linning, Managing Director, Enforcement, DFSA
The DFSA stated that unregistered company service providers present elevated financial crime risks and are subject to regulatory oversight. Enforcement officials emphasized that operating without required DNFBP registration undermines the regulator’s supervision framework and compromises anti-money laundering protections. The regulator indicated it will continue taking enforcement action to protect users of financial services and maintain confidence in the DIFC’s regulatory environment. A full Decision Notice detailing the matter is available on the DFSA website.
Alan Linning, Managing Director, Enforcement at DFSA. Source: LinkedIn
