The Registration Authority (RA) of the Abu Dhabi Global Market (ADGM) has concluded its investigation into Special Purpose Vehicle (SPV) AC Holding Limited (AC Holding) and its sole shareholder and director, Christopher Flinos.
The investigation uncovered significant violations of the financial centre’s regulations by AC Holding and Flinos.
According to the RA, AC Holding exceeded the scope of its commercial license by acting as an investment company and offering financial services to clients.
ADGM registration authority concludes investigation into AC Holding and Director Christopher Flinos
The company was also involved in processing wire transactions to convert cryptocurrencies into fiat currencies and vice versa, which is outside the scope of its authorised activities.
Additionally, AC Holding submitted four false annual accounts to the RA for the financial years 2019 to 2022.
Christopher Flinos was found to have engaged in fraudulent trading. He facilitated unlicensed cryptocurrency conversion transactions, misleading various parties about the nature of the transactions.
Flinos also facilitated the falsification and provision of hundreds of company documents to maintain bank accounts fraudulently.
As a result of these violations, the RA has imposed a total of $3,615,000 in financial penalties. These include:
- A fine of $15,000 against AC Holding for exceeding the scope of its license under the ADGM Commercial Licensing Regulations 2015.
- A fine of $300,000 against AC Holding for filing false annual accounts and engaging in fraudulent schemes in violation of the ADGM Companies Regulations 2020.
- A fine of $3.3 million against Christopher Flinos for providing false information to the RA, engaging in fraudulent activities, and falsifying company documents, also in contravention of the ADGM Companies Regulations 2020.
In addition to the financial penalties, Christopher Flinos has been disqualified from holding the position of director in any ADGM-based company for the maximum allowed period of 15 years.
The RA has deemed Flinos unfit to serve as a company director due to his deliberate misuse of AC Holding’s SPV commercial license as a payment facilitator and his involvement in fraudulent activities.
“Maintaining business integrity and safeguarding business confidence in ADGM are at the forefront of the Registration Authority’s objectives. We remain committed to preventing and deterring conduct that may harm businesses, their clients and investors. Where non-compliance is identified, the Registration Authority will take effective, proportionate and dissuasive disciplinary action to protect ADGM participants. This includes banning individuals who lack fitness and propriety and pose an unacceptable risk to investors from holding leadership positions within companies in ADGM,” Hamad Sayah Al Mazrouei, CEO of ADGM Registration Authority said.
The RA has expressed gratitude to the financial centre’s Financial Services Regulatory Authority (FSRA) for its cooperation during the investigation.
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