The Qatar Financial Center Regulatory Authority announced that it has filed a lawsuit against First Abu Dhabi Bank, with the Supreme Court in New York.

A statement of the authority said that the lawsuit aims to ask the bank to pay the due judicial debt, by order of the court, which amounts to 200 million Qatari riyals ($ 55 million).

The statement added that the lawsuit was filed in New York with the aim of recovering the amount owed to the Qatar Financial Regulatory Authority from the assets owned by First Abu Dhabi Bank in New York.

The statement indicated that the bank had defaulted on the debt owed by it to the Regulatory Authority according to the final decision issued by the Civil and Commercial Court of the Qatar Financial Center.

This prompted the Regulatory Authority to take the necessary measures to implement the ruling issued under recognized measures in implementing international rulings on financial issues.

 The reason for the lawsuit

The reason for filing the lawsuit - according to the authority’s statement - is that First Abu Dhabi Bank obstructed its ongoing investigation and acted in a manner that did not reflect the level of integrity required of the companies operating in the center.

In March 2018, the Qatar Financial Regulatory Authority (QFCRA) appointed specialized investigators.

To investigate suspicions related to First Abu Dhabi Bank’s involvement in violating market regulations by harming the Qatari currency, Qatari government securities, and related financial instruments.

As part of these investigations, the Regulatory Authority required First Abu Dhabi Bank to provide copies of trading records and related documents. However, the bank refused to provide the required information and documents.

The bank also refused - according to the statement - its assertion of fulfilling the obligation that it is obligated to, which is to preserve the relevant documents and refrain from destroying them.

As a result of FAB's failure to provide the required documents, the Qatar Financial Regulatory Authority filed a complaint with the Qatar Financial Center Civil and Commercial Court, calling on the bank to comply with its request to submit the documents.

The Authority confirmed that it will not hesitate to take all measures to protect the financial safety and integrity of the Qatar Financial Center (social networking sites)

 Refusal to comply

Despite the bank’s objection to this request, the court ordered the bank to provide the required documents, and as a result, the bank appealed the ruling.

However, on May 13, 2019, the court rejected the appeal.

Despite this, the statement says, the bank continued to refuse to comply with the court's orders, thus impeding the ongoing investigation with the regulator.

The bank also refused to undertake to preserve the required documents and not to destroy them.

After the decision was issued rejecting the appeal, First Abu Dhabi Bank unilaterally announced its withdrawal from the Qatar Financial Center and the closure of its operating branch in the center, in an attempt to avoid responsibility for its actions and to continue to obstruct the ongoing investigations of the Regulatory Authority.

The statement said that as a result of Abu Dhabi Bank obstructing the investigations conducted by the Regulatory Authority, the Authority decided on August 21, 2019 to impose a fine of 200 million Qatari riyals.

Given the seriousness of the violations committed by First Abu Dhabi Bank, which are deliberately aimed at obstructing its ongoing investigation and harming the Qatar Financial Center.

The statement added that following the lawsuit submitted by the Regulatory Authority under the Qatar Financial Center regulations, the Civil and Commercial Court of the Qatar Financial Center issued a decision considering the penalty of 200 million riyals as a judicial debt that is due and payable to the Regulatory Authority.

The statement added that the bank did not initiate the payment of the debt imposed on it despite it being a duty on it, so the Regulatory Authority decided to resort again to the judiciary to recover its dues, in a step that confirms its reluctance to take all necessary measures and measures to protect the financial integrity and integrity of the QFC and its reputation, as one Leading financial and business centers, and to remedy any damages caused to the center due to any violations or abusive behavior.