No. | Nature of Violation / Ground(s) for Issuance of Fine | Indicative Fine Amount per Violation (AED) |
1. | Violation of AML/CFT and “know your customer” requirements (including, but not limited to, CDD) in— (a) | Regulations and/or Directives by any Entity (including, but not limited to, VASPs); or | (b) | Rules (including, but not limited to, Part III of the Compliance and Risk Rulebook) by any VASP. |
| To be determined in accordance with applicable local and federal laws. |
2. | Violation of— (a) | Rules in the Compliance and Risk Management Rulebook (not covered in No. 1 above) or Market Conduct Rulebook by any Entity; or | (b) | Regulations and/or Directives related to Market Offences by any Entity (including, but not limited to, VASPs). |
| Any of the following— | (a) | for any individual, up to the higher of (i) AED 20,000,000, or (ii) 200% of the profits gained or losses avoided; or | (b) | for any corporate Entity, up to the higher of (i) AED 50,000,000, (ii) 15% annual revenue of the corporate Entity, or (iii) 300% of the profits gained or losses avoided (if greater than (b)(i) or (b)(ii)). |
|
3. | Violation of Regulations, Rules or Directives not covered in No. 1 or No. 2 above by any Entity. |
4. | Issuance of a fine against any Entity pursuant to Regulations IX.C.1 and IX.C.2 on the basis of any of the following non-exhaustive grounds— (a) | any Entity carrying out VA Activity(ies) in violation of Regulation III.A.1 (e.g. without being authorised and Licensed by VARA); | (b) | any Entity issuing a Virtual Asset in violation of Regulation II.A.1; | (c) | any Entity in violation of the mandatory registration requirement in Regulation IV.A.7; | (d) | any Entity misrepresenting to any member of the public (i) any relationship or engagement with VARA, or (ii) such Entity’s ability to unduly influence or accelerate the licensing process (including, but not limited to, any violation of Regulation X); and/or | [e] | any Entity in violation of any Ultimate Beneficial Owner (UBO) disclosure requirements in Regulations, Rules and/or Directives. |
|
5. | Non-payment of fine within any timeframe specified by VARA. | Further fine to be issued, the amount of which shall accrue from when a fine is due at 1% per month (rounded up to the nearest full month) for any unpaid amounts of the fine on a compounding basis, until the initial fine and the further fine are paid in full. |