Thursday 16, August 2018 by Kudakwashe

DFSA stops Abraaj Capital from dealing with new clients

 

Dubai Financial Services Authority (DFSA) has stopped Abraaj Capital (ACL) from moving money to Abraaj Investment Management (AIML).

  

Dubai's financial services regulator, DFSA, announced that it has stopped Abraaj Capital from moving money to AIML to safeguard the interests of investors and the Dubai International Financial Centre (DIFC).

In a statement, DFSA said that it has taken regulatory actions over the past few months under the Regulatory Law to prevent AIML or any affiliates from removing funds from ACL and prohibiting ACL from dealing with new clients.

The DFSA has also cautioned AIML not to undertake any unauthorised financial services activities in or from the DIFC since it is not licenced by the DFSA.

ACL is authorised to manage assets, providing fund administration as well as advising on financial products, arranging deals in investments and arranging credit.

Abraaj Group faces allegations by some investors of misusing their money in a $1 billion healthcare fund.

The rift with investors including the Bill & Melinda Gates Foundation halted the firm's fundraising activities and sparked debt repayment problems.

  

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