Dubai: The Dubai Financial Services Authority (DFSA) has imposed a Dh1.67 million ($454,367) financial penalty on HAYMAN-WOODWARD GLOBAL MOBILITY SERVICES (DIFC) LTD. for providing company formation and related services without the required regulatory registration.
The DIFC-based company, known as HWW DIFC, provided company service provider (CSP) services to 71 clients between August 2018 and February 2025, despite never being registered with the DFSA as a Designated Non-Financial Business or Profession (DNFBP).
The regulator found that the company acted as a formation agent for legal entities and provided registered offices, business addresses and administrative services without the necessary registration.
HWW DIFC also entered into agreements with three free zones outside DIFC to facilitate company setup and related services.
Although incorporated in DIFC with activities listed as management consultancy and document clearing services, the company had never been authorised by the DFSA or registered as a DNFBP.
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Penalty reduced after settlement
The original financial penalty was Dh1.92 million ($522,047), comprising a fine and disgorgement, which involves surrendering financial gains linked to the breach.
HWW DIFC agreed to settle the matter, prompting the DFSA to reduce the fine component by 30%, bringing the total penalty to Dh1.67 million.
The regulator said the company breached Article 71A(1) of the Regulatory Law 2004, which prohibits businesses from carrying out designated activities in or from DIFC without the required registration.
Alan Linning, Managing Director, Enforcement, at the DFSA, said company service providers can present elevated financial crime risks and must be subject to regulatory oversight.
“Registration as a DNFBP enables the DFSA to monitor these activities and ensure that appropriate safeguards are in place,” he said.
“When a firm operates without the required registration, it undermines that regulatory framework and impairs the DFSA's ability to supervise and mitigate those risks effectively.”
Linning said the regulator has zero tolerance for breaches that compromise its anti-money laundering framework and would continue taking enforcement action to protect the integrity of DIFC's financial system.