The Dubai Financial Services Authority (DFSA) has imposed a financial penalty of USD 585,825 (AED 2,149,977) on Moody’s Investors Service Middle East Limited (MISMEL) for multiple data confidentiality violations. The regulator found that the credit rating agency failed to establish and maintain adequate systems and controls to protect sensitive customer information between December 2023 and May 2026.
- Fine Amount: USD 585,825 (AED 2,149,977)
- Original Fine Before Settlement Discount: USD 836,892
- Incident Period: December 2023 to May 2026
- Total Incidents Reported: Seven inadvertent data disclosures, four involving external recipients
- MISMEL Licensed Since: 31 December 2012
MISMEL, licensed as a Credit Rating Agency by the DFSA since 2012, handles substantial volumes of highly sensitive and confidential information from public and private companies, governments, and other counterparties. The regulator determined that the agency contravened DFSA Rules by failing to implement effective data protection measures and employee controls. The company reported seven incidents of inadvertent data disclosure to the DFSA, with four cases involving the release of confidential information to external recipients. MISMEL agreed to settle the matter early, receiving a discount that reduced the penalty from USD 836,892 to USD 585,825.
Credit Rating Agencies such as Moody’s Investors Service Middle East Limited are entrusted by issuers with confidential and market-sensitive data in relation to their rating activities. They must ensure all such information is protected from unauthorised access or disclosure, which could harm the integrity, stability, and orderly functioning of financial markets. The DFSA requires Credit Rating Agencies to establish and maintain effective systems and controls to protect confidential and market-sensitive data and to foster a strong culture of data confidentiality among their employees.
– Alan Linning, Managing Director, Enforcement, DFSA
The DFSA’s enforcement action underscores the regulatory expectations for financial institutions operating within the Dubai International Financial Centre. The regulator stated it will continue to enforce compliance with its regulatory framework and provide clarity to ensure all entities meet required standards for protecting market-sensitive data and maintaining financial system integrity.
Alan Linning, Managing Director, Enforcement at DFSA. Source: LinkedIn
