Abu Dhabi Global Market Regulator Fines Pyypl Ltd for AML Violations

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has imposed a penalty of $486,000 (Dh1.784 million) on money service provider Pyypl Ltd (Pyypl) for failing to comply with anti-money laundering (AML) requirements.

Regulatory Action:

The FSRA found that Pyypl had inadequate AML compliance and operated beyond its Financial Services Permission scope. Specifically, Pyypl was found to have:

1. Failed to set and maintain adequate AML systems and controls.
2. Neglected to keep its AML business risk assessment up to date.
3. Failed to conduct required AML risk assessments and due diligence on its customers, including assessing expected payment volumes, considering all products for customer AML risk assessments, and verifying customers’ residential addresses during due diligence.
4. Lacked adequate and effective AML policies, procedures, systems, and controls, including monitoring and detecting suspicious activity or transactions.

Additionally, Pyypl conducted the Regulated Activity of Insurance Intermediation without proper authorization between May 2021 and November 2022.

Financial Penalty:

Pyypl agreed not to dispute the findings, resulting in a 20% discount on the financial penalty. Without this agreement, the FSRA would have imposed a penalty of $607,500 (Dh2.231 million).

UAE’s Enhanced AML Regulations:

Regulators in the UAE, including the Central Bank, have strengthened AML regulations and imposed penalties on financial institutions and service providers for non-compliance with AML and anti-terrorism financing laws. 

The UAE is taking a proactive stance in combating financial crime and money laundering risks.

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