The Dubai Financial Services Authority (DFSA) has imposed a Dh2.64 million fine on DIFC-licensed OCS International Finance Ltd. and a further Dh682,631 on its CEO, Christian Thurner, following an investigation into the mismanagement of Dh168.82 million (approximately $46 million) in client funds. These penalties reflect a 30% discount applied after the settlement.
The DFSA found that OCS had violated several key regulations, including improper handling of client funds, misleading both a bank and the DFSA, and providing false documentation. Thurner has been barred from holding any executive or employee position in financial or related entities within the Dubai International Financial Centre (DIFC).
The DFSA stated that Thurner is also "restricted from performing any financial service-related functions in or from the Dubai International Financial Centre," as part of their enforcement measures.
🔺 The DFSA's investigation uncovered multiple serious breaches, including:
🔺Mishandling $46 million in client funds prior to being authorised to provide financial services within the DIFC.
🔺 Misleading its bank by submitting false documents related to client funds.
🔺Failing to segregate client funds in a separate account and using them for unauthorised purposes.
🔺Presenting falsified documents to its bank to disguise the true nature of its financial arrangement with a client. Even after agreeing to void the arrangement with the client, OCS provided the bank with a forged version of the agreement.
🔺Concealing crucial information from the DFSA, including Thurner’s past convictions during his application for DFSA authorisation and incorrect details about the client’s bank account opening dates.
OCS and Thurner also obstructed the DFSA investigation by withholding important documents, including bank statements related to the receipt of client funds. Additionally, OCS repeatedly failed to meet its regulatory reporting obligations, further complicating the investigation.
Ian Johnston, Chief Executive of the DFSA, commented on the situation:
“The integrity of the DIFC is essential in maintaining investor confidence. Firms and individuals in the DIFC must adhere to the highest standards of conduct and integrity—especially when dealing with client funds. Our enforcement actions send a strong message that we will not tolerate misleading or obstructive behaviour, and we will take necessary steps to protect investors.”
The DFSA's enforcement action against OCS and its CEO underscores the regulator’s commitment to upholding high standards of integrity within the DIFC and its readiness to take strong action against breaches of trust involving client funds.
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