Dubai: Dubai’s financial regulator imposed a record $315 million fine on Abraaj Group, the collapsed buyout firm that’s already facing legal action in the U.S, Bloomberg reported on Tuesday.

The Dubai Financial Services Authority, which oversees institutions at the Dubai International Financial Centre, imposed fines on Abraaj Capital Ltd. and Abraaj Investment Management Ltd. for “serious wrongdoing” and “misusing investors’ monies,” it said on Tuesday.

The penalty is a sign that the regulator is seeking to safeguard Dubai’s position as a business hub and reassure investors over its failure to take action sooner. Former managing partner Mustafa Abdel-Wadood last month pleaded guilty to conspiracy charges in the U.S., while five other employees including founder and former CEO Arif Naqvi, have also been charged in the U.S.

Chris Skipper, Partner, Winston & Strawn Middle East, commented: “DFSA’s decision to impose fines on entities that have violated the fundamental principles of financial integrity and compliance reinforces DFSA’s and the wider Dubai Government’s commitment to strengthen investor confidence by protecting their interests through a sound, transparent and secure regulatory environment. This approach is clearly reflective of the maturing financial environment in Dubai and the UAE, positioning Dubai on par with other leading financial and investment hubs such as the Cayman Islands and Channel Islands. Protecting the interests of investors is of paramount importance to securing their confidence and attracting foreign direct investment (FDI) to Dubai. DFSA’s due diligence highlights that Dubai has zero tolerance to financial malpractice and that the Emirate is committed to upholding the highest standards of corporate governance and transparency – an essential step in Dubai’s evolution as a global financial destination.”