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Part 4 Contraventions, enforcement and appeals

7. General contraventions
(1) A Reporting Financial Institution who:
(a) does an act or thing that is prohibited under these Regulations;
(b) does not do an act or thing that is required or directed to do under these Regulations; or
(c) otherwise contravenes these Regulations,

commits a contravention of these Regulations and is liable to a penalty or an Administrative Fee, or both, as provided for in Schedule 2, and any other penalty or Administrative Fee imposed by a Regulatory Authority pursuant to subsection 5(6)(a) or a requirement to perform any action directed by the Regulatory Authority pursuant to subsection 9(1)(c).
8. Anti-Avoidance
(1) If a Reporting Financial Institution, person or intermediary enters into any arrangements or engages in a practice, the main purpose or one of the main purposes, of which can reasonably be considered to be to avoid an obligation imposed under these Regulations, the Reporting Financial Institution, person or intermediary is subject to the obligation as if the Reporting Financial Institution, person or intermediary had not entered into the arrangement or engaged in the practice.
9. Enforcement
(1) Where the Regulatory Authority, or its delegate, considers that a Reporting Financial Institution has contravened a provision of these Regulations, it may by written notice to such Reporting Financial Institution:
(a) allege that the Reporting Financial Institution has committed the contravention and state the particulars of the facts it relies on;
(b) set out the details of the applicable penalty or Administrative Fee, or both, in respect of each contravention; and
(c) where necessary and appropriate the Regulatory Authority may order that certain action be taken to comply with these Regulations.
(2) The imposition of a penalty or Administrative Fee, or both, under subsection 9(1) shall be made within the period of twelve (12) months beginning with the date on which:
(a) the Reporting Financial Institution became liable to the penalty or Administration Fee, or both, or
(b) the contravention first came to the attention of the Regulatory Authority.
(3) Liability to a penalty or Administrative Fee, or both, under subsection 9(1) does not arise if the Reporting Financial Institution satisfies the Regulatory Authority that there is a reasonable excuse for contravening the Regulations.
(4) Neither of the following is a reasonable excuse for purposes of subsection 9(3):
(a) insufficiency of funds to do something; or
(b) reliance on another person to do something.
(5) If a Reporting Financial Institution has a reasonable excuse for contravening the Regulations up to a particular time or event, the Reporting Financial Institution shall not be liable to a penalty or Administrative Fee, or both, if it can show that any subsequent contravention of these Regulations was remedied without unreasonable delay after it became aware that the reasons providing the reasonable excuse had ceased.
10. Appeals
(1) A Reporting Financial Institution may appeal against any penalty or Administrative Fee, or both, imposed or action ordered under subsection 9(1) on the following grounds:
(a) it disputes the grounds or reasons for the penalty or Administrative Fee, or both, provided by the Regulatory Authority;
(b) it disputes the amount of the penalty or Administrative Fee, or both, imposed; or
(c) it disputes the validity of any action ordered by the Regulatory Authority.
(2) Any appeal by a Reporting Financial Institution to a penalty or Administrative Fee, or both, or action ordered under subsection 9(1) shall be instituted by a written notice of appeal setting out the grounds of appeal delivered to the Regulatory Authority within a period of twenty (20) days from the date of the relevant notice provided to it under subsection 9(1).
(3) When considering a notice of appeal delivered pursuant to subsection 10(2), the Regulatory Authority may, after due consideration of the grounds of appeal:
(a) confirm, cancel or increase or vary the number of days of the failure in respect of any penalty or Administrative Fee, or both, originally imposed; or
(b) confirm, change or cancel any action originally ordered by the Regulatory Authority,

and the Regulatory Authority shall confirm such finding in writing to the Reporting Financial Institution.
(4) The Regulatory Authority shall within forty (40) days consider the appeal and provide a written notice of its decision. If the Regulatory Authority fails to give written notice of its decision for the appeal, then appeal will be deemed to have been successful.
(5) A penalty or Administrative Fee, or both, imposed or action ordered by a Regulatory Authority under subsection 9(1), or confirmed pursuant to subsection 10(3), shall be paid or performed within twenty (20) days after the date of the written notice provided pursuant to:
(a) Subsection 9(1); or
(b) Subsection 10(3),

whichever is applicable in the circumstances.
(6) If, within the period specified in subsection 10(5):
(a) the Reporting Financial Institution pays the imposed penalty or Administrative Fee, or both, or performs the required action under the notice, then no further proceedings will be commenced against it in respect of the relevant contravention; or
(b) the Reporting Financial Institution fails to pay the imposed penalty or Administrative Fee or both, or perform the required action, or (if relevant) takes no action to appeal the imposition of the penalty or Administrative fee, or both, or required action pursuant to subsection 10(2), the Regulatory Authority, or its delegate, may apply to the ADGM Court, and the court may:
(i) order the payment of the penalty or Administrative Fee, or both,;
(ii) order for the required action to be taken; and
(iii) make any further order it deems fit.