Abu Dhabi’s Financial Regulator Fines Crypto Firm Hayvn and CEO $12 Million for AML Breaches
Abu Dhabi’s financial regulator has imposed fines exceeding $12 million on crypto firm Hayvn and its CEO, Christopher Flinos, for Anti-Money Laundering (AML) breaches and unlicensed activity. The Financial Services Regulatory Authority of Abu Dhabi Global Market (FSRA) took enforcement action against Hayvn Group and Flinos for regulatory violations and engaging in unauthorized crypto operations.
Enforcement Action Details
The FSRA announced on Monday, April 14, that it levied fines totaling $8.85 million and revoked Hayvn’s financial services license. Additionally, the Registration Authority of Abu Dhabi Global Market imposed a separate penalty of $3.6 million, with $3.3 million directed at Flinos for his involvement in fraudulent activities.
Breakdown of Fines
Hayvn Cayman and Hayvn ADGM were fined $3.6 million and $3 million, respectively, while AC Holding received a penalty of $1.5 million. Flinos faced a personal fine of $750,000 and was prohibited from holding any financial services position within ADGM.
Regulatory Breaches
The FSRA revealed that Hayvn ADGM permitted client transactions to flow through accounts under the control of AC Holding, an unlicensed entity. The firm was found to have inadequate systems and controls for managing operations and risks, as well as failing to document all client relationships in breach of AML regulations.
False and Misleading Information
The investigation uncovered that Hayvn Cayman, AC Holding, and Flinos facilitated client transactions involving the conversion of Virtual Assets to fiat currency through AC Holding’s accounts. Furthermore, the entities disseminated over 200 false and misleading documents, violating regulatory standards.
Hayvn’s Business Operations
Hayvn’s platform offered users the ability to trade crypto via over-the-counter services and accept crypto payments online and in-person. In November 2022, the board of Hayvn approved a bid for FTX’s payments unit, FTX Pay, citing the asset’s valuable relationships with major companies like Mastercard. However, it remains uncertain whether the acquisition was finalized.
Disclaimer: The information provided in this article is based on publicly available sources and does not constitute financial advice or endorsement.