Abu Dhabi regulators fined Hayvn Group $12.45 million for severe AML control failures, including using an unlicensed vehicle for transactions. Over 200 falsified documents were uncovered, leading to penalties on affiliated entities and the revocation of Hayvn’s operating licence. The former CEO, Flinos, was also banned from directorships in Abu Dhabi’s finance sector.
Abu Dhabi regulators have imposed a fine of $12.45 million on crypto firm Hayvn Group for inadequate anti-money laundering (AML) controls. The infractions included routing client transactions through AC Holding, an unlicensed special purpose vehicle, since October 2018, resulting in minimal AML measures in place. Emmanuel Givanakis, CEO of the FSRA, characterised these actions as particularly severe following the probe’s conclusion.
The investigation revealed that over 200 falsified documents were submitted on AC Holding letterheads to banking partners, with former CEO Christopher Flinos providing misleading information to regulators when questioned. Penalties totalled $8.85 million across various affiliated entities, with an additional $3.61 million levied against Flinos himself.
Fines were allocated as follows: $3.6 million against Hayvn Cayman, $3 million against its regulated subsidiary Hayvn ADGM, $1.5 million against AC Holding Limited, and $750,000 directly against Flinos. The Registration Authority additionally penalised Flinos for providing false information and for his involvement in fraudulent activities, with AC Holding receiving a fine for exceeding its licensed scope.
The regulators also revoked Hayvn’s operating licence and permanently barred Flinos from taking director roles within Abu Dhabi’s finance sector. The FSRA has confirmed that no client funds were reported missing over the six-year regulatory oversight. This enforcement action is significant within the Abu Dhabi Global Market (ADGM), which serves as a financial centre under the UAE’s regulatory framework.
Furthermore, the FSRA’s collaboration with the Cayman Islands Monetary Authority during the investigation illustrates increasing international regulatory coordination. Hamad Sayah Al Mazrouei, CEO of the Registration Authority, stated his agency’s commitment to enforce effective measures against non-compliance within the financial sector.
