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CySEC fines €195 000 Falcon Brokers directors, bans them from professional activities

Jul 10 2017
By
Jonathan Smith

 The Cyprus Securities and Exchange Commission (CySEC) announced it has fined €195 000 total the four directors of Falcon Brokers and has banned three out of the four of them from exercising professional activities in the financial sector for a number of years. 

 
According to the announcement, Mohammed Yahya Amin Al Ansari, Sole shareholder, executive director and senior manager is banned from professional activities in finance for five years and has to pay a fine of €150 000. Khalid Ahmad Emran Abdo and Wael Ata Elayyan Jaber, independent non-executive directors, are banned for two years and have to pay a fine of €10 000 each. The fourth individual that is fined by CySEC - Marwan El Daouk, Executive director and senior manager, is penalized only with a fine of €25 000. 
 
The penalties follow an eighteen-month investigation into suspected failings at the company. They  are for failing to to have in place and strictly follow the operational requirements to safeguard clients’ funds from use in the Company’s own account and failing to protect clients' funds. This, according to CySEC is a “very serious infringement”.
 
“The senior managers of Falcon Brokers Limited wholly neglected their duties to ensure the Company had the correct measures in place to protect investors, which resulted in serious failings to safeguard client funds”, said Demetra Kalogerou, Chair of the CySEC, quoted in the regulators' press release. “Having limited investor detriment through the suspension and withdrawal of the Company’s license in 2015 and 2016, imposing multiple fines on key persons and banning three directors from regulated activities concludes CySEC’s eighteen-month investigation. As is consistently stated, CySEC will not hesitate to pursue regulatory action against current or former directors should they or their licensed company be found to be in violation of the legislation we consistently enforce.” 
 
We remind you that the Cyprus regulator suspended the license of Falcon Brokers in September 2015 and terminated it in October 2016.
 
 
TAGS: cysec  falcon brokers 
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