Entire Section

  • 2015 2015

    • 21 December 2015 — DFSA Censures MAS Clearsight and Directs it to Compensate Investors

      Click herehere to view PDF.

      Dubai, UAE, 21 December 2015: The Dubai Financial Services Authority (DFSA) has censured MAS Clearsight Limited (MAS) and directed MAS to pay compensation of USD3,200,000 (AED12,044,800) to 20 investors for contravening DFSA's Law and Rules. Had it not been for MAS' financial position and the DFSA's decision to require MAS to pay compensation to the investors, the DFSA would also have imposed a financial penalty on MAS.

      In June 2015, the DFSA suspended MAS' DFSA License to stop it from conducting any Financial Services in the DIFC.

      During 2010 to 2011 MAS marketed investment opportunities in the production of limited-edition publications. MAS told investors they would be repaid 100% of their initial investment, plus a further minimum return of 50% of their total investment. In fact, the publications have not been produced and the investors have not been repaid the amount of their initial investment or the returns they were promised. In July 2013, some of the investors complained to the DFSA about their investments through MAS.

      The DFSA investigated the matter and found that MAS had promoted a Collective Investment Fund in a manner that did not comply with the applicable Laws and Rules. In addition, the investors were not properly treated as clients by MAS and were thereby excluded from receiving the other protections they were entitled to under the DFSA's regulatory regime.

      Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA's Laws and Rules provide important protections for investors. These protections are designed to ensure that investors are fully informed about the investments they make and that the investments are suitable for them. As this action against MAS shows, the DFSA will take appropriate action against anyone who fails to provide investors with the required regulatory protections."

      MAS initially challenged the DFSA's Decision Notice and referred the decision to the Financial Markets Tribunal (FMT), which is empowered to review decisions made by the DFSA. However, on 19 November 2015 the DIFC Courts ordered a liquidator to be appointed to MAS. The liquidator decided not to proceed with the challenge against the DFSA's decision. Accordingly, the FMT dismissed the appeal thereby confirming that the DFSA's Decision Notice remains in effect

      Copies of the FMT's Decisions in this matter will be published on the FMT's website in due course.

      A copy of the DFSA's Decision Notice can be found in the Public Register on the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

      — Ends —

      For further information please contact:
      Kaja Mohaisen
      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

      Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

      In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

      Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

      The FMT is operationally independent of the DFSA and it has its own rules of procedure. The FMT conducts a full merits review of DFSA decisions that are referred to it and determines the appropriate action for the DFSA to take. This would have been the first case considered by the FMT since the changes were made to the DFSA's decision-making framework in August 2014. .

    • 7 December 2015 — The DFSA Reminds Investors of their Obligations — Connected Person Disclosures

      Click herehere to view PDF.

      Dubai, UAE, 7 December 2015: The Dubai Financial Services Authority (DFSA) reminds shareholders of companies listed on Nasdaq Dubai of their disclosure obligations under the DIFC Markets Law and DFSA Markets Rules (the “Regulation”). When a shareholder acquires 5% or more of the voting shares of a company listed on Nasdaq Dubai, such person is a Connected Person under DFSA administered laws and Rules. The obligations apply to shareholders, whether they are natural or legal persons.

      A Connected Person is required to file a report with the DFSA and listed company within 5 days of acquiring a holding of 5% or more of the voting shares of the listed company. Any further change of 1% increase or decrease triggers a report to the DFSA and the listed company.

      Once the listed company receives such a report from a Connected Person, it will disclose the information to the market via a public announcement. This disclosure is to ensure the market is informed about shareholders who control a significant number of voting shares.

      The obligation to monitor their shareholding and to file a Connected Persons report within the required 5 day period rests with the shareholder. As such, shareholders in companies listed on Nasdaq Dubai will be held responsible for meeting their obligations.

      Shareholders could face regulatory action in the event of failure to comply with the above requirements. Such regulatory action could be in the form of monetary penalties or a public censure and could lead to banning from transacting on the market in the case of repeated non-compliance.

      Please consider this as a reminder of your obligations to the DFSA and the market.

      For further information on Connected Person disclosures please click on the links below:

      DFSA Markets Rules (MKT)DFSA Markets Rules (MKT)

      DFSA Markets Brief 6DFSA Markets Brief 6

      Should you have any queries in relation to the contents of this release or your obligations under the DIFC Law and the DFSA Rules applicable to Connected Persons, please contact markets@dfsa.ae

      — Ends —

      For further information please contact:
      Kaja Mohaisen
      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

      The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

    • 24 November 2015 — DFSA Facilitates Certification of 10 UAE Nationals in the Fundamentals of Islamic Banking and Finance

      Click herehere to view PDF.

      Dubai, UAE, 24 November 2015: The Dubai Financial Services Authority (DFSA) announces today ten UAE Nationals who the DFSA will facilitate to obtain a certified qualification on Fundamentals of Islamic Banking and Finance from the Chartered Institute for Securities & Investment (CISI), UK. The ten were selected by the DFSA through an assessment made at a workshop hosted by the DFSA last month on Islamic finance. The seminar is part of the DFSA's Bawabaty 'My Gateway' initiative launched last year. The initiative aims to assist UAE Nationals wishing to pursue a career in financial services; to provide lifelong learning opportunities for our local community; and to support community education in financial services.

      The workshop participants came from a number of universities and government entities across the UAE. The content of the workshop was developed by CISI and delivered by DFSA's Islamic finance expert. The non-sponsored participants will receive a 50% discount on the examination fees.

      Mr Waleed Saeed Al Awadhi, Director, Operations and Corporate Affairs of the DFSA said: "We are very happy to congratulate the ten UAE Nationals who scored the highest in the assessment conducted by the DFSA last month and wish them all the best in their exam. The DFSA's objective is continue to be an active role player in the preparation of an innovative Emirati generation in the field of Islamic finance that contributes to the "Dubai the Capital of Islamic Economy" initiative which is in line with the vision of the UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum."

      — Ends —

      For further information please contact:
      Kaja Mohaisen
      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

      The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

    • 4 November 2015 — DFSA fines ABN AMRO for Anti-Money Laundering Deficiencies

      Click herehere to view PDF.

      Dubai, UAE, 4 November 2015: The Dubai Financial Services Authority (DFSA) has imposed a fine of USD 640,000 (AED 2,350,720) on ABN AMRO Bank N.V. DIFC Branch (ABN).

      The fine was imposed following a DFSA investigation which found that, over the period from 1 January 2013 to 31 December 2014, ABN contravened a number of DFSA's Rules requiring it to implement appropriate safeguards to prevent opportunities for money laundering.

      ABN brought the contraventions to the DFSA's attention after the firm received internal whistle-blower complaints concerning the operation of its Private Banking International business line in the DIFC (PBI). In response to the complaints, ABN initiated an internal investigation which revealed that certain of its staff, within the DIFC branch, had engaged in practices that breached ABN's own policies and DFSA administered laws and Rules.

      The DFSA imposed the fine because ABN did not:

      •   ensure that its anti-money laundering (AML) related systems and controls operated effectively;
      •   monitor and supervise the activities of all its PBI employees and ensure that they were adequately trained, understood and adhered to ABN's AML policies and procedures;
      •   undertake adequate risk based assessments of every customer or conduct adequate customer due diligence (CDD) for many of its clients; and
      •   undertake adequate transaction monitoring of client accounts.

      ABN's failings were widespread and exposed its business, and the DIFC, to a high risk of financial crime and money laundering. However the DFSA does not allege that any money laundering took place.

      The DFSA reduced the amount of the fine after taking into consideration ABN's initiative to act quickly on the issues raised in the complaints, to self-report the misconduct to the DFSA, to take significant steps to remediate its deficiencies and to co-operate fully with the DFSA's investigation.

      ABN also agreed to settle the DFSA's action at an early stage of the DFSA investigation and therefore qualified for a further discount under the DFSA's policy for early settlement.

      Were it not for the mitigating factors and settlement discount, the DFSA would have imposed a fine of USD 1,000,000 (AED 3,670,000) on ABN.

      As well as imposing the fine, the DFSA directed ABN to undertake further steps to remediate its AML related deficiencies.

      The DFSA's investigation was conducted in close co-operation with ABN's home regulator, De Nederlandsche Bank N.V. (DNB).

      Mr Bryan Stirewalt, Managing Director, Supervision, Acting Chief Executive of the DFSA said: "Although the contraventions in this matter are serious, ABN has taken significant proactive steps to report, investigate and remediate its failings. ABN co-operated fully with the DFSA's investigation. Consequently, the DFSA has taken these factors into consideration and adjusted the penalty proportionally. The DFSA seeks to encourage good governance and compliance with its standards by incentivising those who embrace compliance with its regulatory regime. In this case, ABN received a proportionate discount for exercising a good compliance culture after it found misconduct which contravened its own standards as well as the DFSA administered regulatory regime.

      The DFSA wishes to thank the DNB for the assistance it provided to the DFSA's investigation."

      A copy of the DFSA's Decision Notice can be found in the Public Register on the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

      — Ends —

      For further information please contact:
      Kaja Mohaisen
      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

      The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

    • 23 August 2015 — The DFSA Appoints New General Counsel

      Click herehere to view PDF.

      Dubai, 23 August 2015: The Dubai Financial Services Authority (DFSA) today announced that Ms Muna Dandan will join them as General Counsel. Ms Dandan has held a number of senior legal positions in the private sector and has significant experience in legal practice. As General Counsel, Ms Dandan will have overall responsibility for all legal work carried out in the regulator.

      Ms Dandan's appointment follows an international search carried out by Hedley May LLP.

      Mr Ian Johnston, Chief Executive of the DFSA said: "I am pleased to welcome Muna to our executive team. The position of General Counsel carries significant responsibilities for the DFSA and its Board and it is clear that Muna brings an excellent balance of legal and industry knowledge to the DFSA".

      Mr Johnston acknowledged the contributions made by the outgoing General Counsel, Mr Michael Ridgeway and the Managing Director of Policy and Legal Services, Mr Errol Hoopmann each of whose contracts are at an end and plan to return to their home country. "I would like to thank Errol and Michael for the excellent work they did at the DFSA. Each added greatly to our reputation and that of the Dubai International Financial centre (DIFC), and we are sorry to see them go".

      Ms Dandan will take up her role at the end of September.

      The DFSA also confirmed that Mr Peter Smith, Head of Policy and Strategy will now have oversight of all policy work at the regulator.

      — End —

      For further information please contact:

      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

      The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti- Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division.

      Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

      In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

      Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

    • 6 August 2015 — The DFSA Signs MoU with Australia's Prudential Supervisor

      Click herehere to view PDF.

      Sydney, 6 August 2015: The Dubai Financial Services Authority (DFSA) entered into an agreement with the Australian Prudential Regulation Authority (APRA) last week. The Memorandum of Understanding commits the DFSA and APRA to information sharing and co-operation in the supervision of financial institutions.

      The MoU was signed on behalf of the DFSA by Chief Executive, Mr Ian Johnston, and by the Chairman of APRA, Mr Wayne Byres, in Sydney on the side-lines of the Boao Forum for Asia, at which they were both speaking.

      Mr Ian Johnston, Chief Executive of the DFSA said: "I am very pleased to sign this MoU with APRA and to meet Mr Byres again. Much has been done to advance the critical work of the international standard-setters in the areas of insurance and banking supervision". Mr Johnston noted APRA's membership of the International Association of Insurance Supervisors (the IAIS) and Mr Byres' membership of the Basel Committee on Banking Supervision (BCBS). Mr Byers was formerly its Secretary General. "As a member of the IAIS and as an Observer on the Basel Committee, the DFSA also appreciates the importance of international standards in the insurance and banking sectors", Mr Johnston said.

      He added: "This bilateral MoU with APRA reflects the presence of a number of Australian firms offering financial services in the DIFC and reflects each Authority's commitment to co-operation in relation to their regulation. It also follows similar arrangements the DFSA has with other significant supervisors in the UK, Germany, Italy, France, the US, India, China, Japan and Singapore, as well as in the Region".

      — End —

      For further information please contact:

      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

      The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti- Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division. Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

      In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

      Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

      The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the Australian financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurance, friendly societies, and most of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding $4.9 trillion in assets for Australian depositors, policyholders and superannuation fund members.

      Mr Wayne Byres was appointed as a Member and Chairman of APRA from 1 July 2014 for a five-year term.

      Mr Byres' early career was in the Reserve Bank of Australia (RBA), which he joined in 1984. After more than 13 years with the RBA, including a secondment to the Bank of England in London, he transferred to APRA on its establishment in 1998 and held a number of senior executive positions in APRA's policy divisions and supervisory divisions. In 2004, Mr Byres was appointed Executive General Manager, Diversified Institutions Division with responsibility for the supervision of Australia's largest and most complex financial groups. He held this role until the end of 2011, when he was appointed to the role of Secretary General of the Basel Committee on Banking Supervision (BCBS), based at the Bank for International Settlements in Basel, Switzerland.

      Mr Byres is APRA's representative on the Payments System Board, the Council of Financial Regulators, the Trans-Tasman Council on Banking Supervision, the Basel Committee and its oversight body, the Governors and Heads of Supervision.

    • 29 July 2015 — Arqaam Capital Limited Resolves Compliance Deficiencies with the DFSA

      Click herehere to view PDF.

      Dubai, UAE, 29 July 2015: The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking (EU) from Arqaam Capital Limited (Arqaam), a company incorporated in the Dubai International Financial Centre (DIFC), and a DFSA Authorised Firm.

      The EU resulted from a DFSA investigation following a periodic DFSA risk assessment that focused on Arqaam's compliance with anti-money laundering (AML) obligations in the DIFC. The risk assessment identified a number of deficiencies in Arqaam's AML systems and controls, assessment of customer AML risks and customer due diligence (CDD) practices.

      Although the EU does not mention any specific contraventions of DFSA-administered laws or regulations, the DFSA is concerned that Arqaam may not have:

      •   acted with due skill, care and diligence;
      •   ensured that its affairs were managed effectively and responsibly; and
      •   complied with certain DFSA AML Rules requirements.

      In light of the DFSA's concerns, Arqaam will engage an independent compliance expert to assist the firm to remedy the AML deficiencies the DFSA has identified and any other issues the expert may identify.

      Arqaam also agreed to pay a financial penalty of USD50,000 (AED183,652). Arqaam cooperated fully at an early stage of the DFSA investigation.

      Mr Ian Johnston, Chief Executive of the DFSA said: "Having robust and effective AML systems and controls, including customer AML risk assessments and CDD practices, are important in deterring financial crime. Firms should review their AML systems and controls regularly and ensure staff are given appropriate training concerning the firm's AML responsibilities. Furthermore, willingness to co-operate with the DFSA and remediate regulatory deficiencies at an early stage mitigates risks for both the firm and the DIFC."

      A copy of the Enforceable Undertaking can be found in the Public Register of the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

      - Ends -

      For further information please contact:

      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

      Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

      In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

      Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

    • 10 June 2015 — Kuwait Turkish Participation Bank (Dubai) Limited Resolves Compliance Concerns With The DFSA

      Click herehere to view PDF.

      Dubai, UAE, 10 June 2015: The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking (EU) from Kuwait Turkish Participation Bank (Dubai) Limited (KTD), a company incorporated in the Dubai International Financial Centre and a DFSA Authorised Firm.

      The EU resulted from a DFSA investigation which identified deficiencies and areas for improvement in KTD's systems and controls regarding risk management, anti-money laundering (AML) and corporate governance. The DFSA had concerns that KTD may not have:

      •   acted with due skill, care and diligence;
      •   ensured that its affairs were managed effectively and responsibly; and
      •   established and maintained adequate systems and controls.

      In light of the DFSA's concerns, KTD agreed to pay a financial penalty of USD150,000 (AED551,250) to the DFSA of which USD50,000 (AED183,750) is payable on or by 8 July 2015. The remaining USD100,000 (AED367,500) is suspended indefinitely and becomes payable if KTD fails to comply with the EU.

      KTD also agreed to improve its corporate governance arrangements and engage an independent compliance expert to ensure the deficiencies identified by the DFSA's investigation have been remedied.

      The DFSA notes that no specific contraventions of DFSA Laws and Rules by KTD are cited in the EU. The DFSA also acknowledges that KTD co-operated fully with the DFSA's investigation and has already carried out significant remedial work.

      Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA's action highlights the importance of Firms having robust and effective risk management, corporate governance and AML systems and controls. The DFSA urges Firms to review their systems and controls regularly to identify and remedy any deficiencies."

      A copy of the Enforceable Undertaking can be found in the Public Register of the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

      - Ends -

      For further information please contact:

      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Mr Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

      Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

      In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

      Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

    • 7 June 2015 — DFSA Signs MoU with Kuwaiti Counterpart

      Click herehere to view PDF.

      The Dubai Financial Services Authority (DFSA) has last week entered into a Memorandum of Understanding (MoU) with the Capital Markets Authority of Kuwait (CMA).

      The MoU was signed at the DFSA offices by Mr Ian Johnston, Chief Executive of the DFSA, and His Excellency Dr Nayef Falah Al-Hajraf, Chairman of the Board of Commissioners of the CMA, Kuwait.

      The CMA was established in 2010 to regulate and develop the capital markets in the state of Kuwait while supervising and monitoring regulated companies with the aim of promoting fairness and transparency in transactions related to the securities markets, giving confidence to investors by protecting them from illegal practices, and by enforcing the securities law.

      Mr Johnston said, "I am honoured to welcome His Excellency, Dr Nayef Falah Al- Hajraf, to Dubai and to the DFSA, for this important initiative. Along with its commitments to the international standard-setters and its relationship with key home regulators in Europe, India and China, the DFSA maintains its focus on the region, particularly its links with counterparts in the Gulf Cooperation Council (GCC). As relatively young regulators — the DFSA was established in 2004; the CMA in 2010 — the DFSA and CMA see value in developing our capacity as capital markets regulators. Both authorities have agreed on a secondment programme that will allow regulatory members of staff to learn from each other and, in turn, to share this knowledge and experience with their colleagues."

      The Chairman of the DFSA, Mr Saeb Eigner, said, "I am very pleased to see that, as part of its focus on the Region, the DFSA is deepening its engagement with regulators in the GCC. In this spirit, the DFSA looks forward to working closely with the CMA, enhancing information sharing and cooperation and providing the foundation for facilitating the entry of financial institutions in the DIFC from Kuwait".

      The MoU signing was attended by the International Relations Director Mark McGinness, and Corporate Affairs Director, Waleed Saeed Al Awadhi in the DFSA, as it was attended by the Board of Commissioners Office Director, Moayed Al-Shakhs, and International Relations Office Director in the CMA.

    • 20 May 2015 — DFSA Fines United Investment Bank Limited

      Click herehere to view PDF.

      Dubai, UAE, 20 May 2015: The Dubai Financial Services Authority (DFSA) has imposed a fine of USD 56,000 (AED 205,800) on United Investment Bank Limited (UIB).

      The fine was imposed following a DFSA investigation which found that, from April to July 2014, UIB contravened a number of the DFSA's Rules, dealing with systems and controls to prevent money laundering (Anti-Money Laundering (AML) Rules). In particular, UIB:

      •   did not take sufficient steps to identify and assess the money laundering risk to which its business was exposed;
      •   established a business relationship with customers where the ownership or control arrangements of the customers prevented UIB from identifying one or more of the customers' beneficial owners;
      •   failed to obtain properly certified documents verifying the identity of customers;
      •   failed to properly document adequate information on the purpose and intended nature of its business relationships with customers;
      •   failed to properly document its understanding of its customers' sources of funds and wealth; and
      •   did not undertake sufficient due diligence on customers which UIB itself had identified as being high risk.

      As well as imposing the fine, the DFSA directed UIB to implement a plan to address the problems with its AML systems and controls and engage a suitably experienced and independent third party to oversee UIB's take-on of new clients.

      It is not alleged that any money laundering took place.

      UIB and its senior management, including its SEO, have accepted responsibility for the contraventions and have cooperated fully with the DFSA to resolve the shortcomings in UIB's AML systems and controls.

      UIB agreed to settle the matter following the conclusion of the investigation and the fine was imposed by way of a Decision Notice agreed with UIB. The DFSA therefore reduced the fine by 20% under the DFSA's policy for early settlement. Were it not for this discount, the fine imposed on UIB would have been USD 70,000 (AED 257,250).

      Mr Ian Johnston, Chief Executive of the DFSA said: "Firms in the DIFC must conduct proper due diligence on clients and have effective systems and controls to prevent opportunities for money laundering. The DFSA will take appropriate action against any person who does not comply with the DFSA's AML Rules."

      A copy of the DFSA's Decision Notice can be found in the Public Register on the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

      - Ends -

      For further information please contact:

      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

      The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division.

      Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

      In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

      Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

    • 19 May 2015 — The DFSA and the DIFC Registrar of Companies Co-host FATCA Outreach Workshop

      Click herehere to view PDF.

      Dubai, UAE, 19 May 2015: The Dubai Financial Services Authority (DFSA) and the Dubai International Financial Centre (DIFC), Registrar of Companies (RoC), jointly hosted an outreach workshop last week regarding the Foreign Account Tax Compliance Act (FATCA). FATCA is extra-territorial US legislation that affects Financial Institutions (FIs), particularly those which have accountholders who are US Persons, as defined by the law.

      The event was specifically targeted at senior office holders of Authorised Firms in the DIFC that are affected by FATCA. In addition to background information regarding FATCA, details regarding the DIFC's reporting processes were explained. Private consultants were present at the session to respond to pre-submitted general questions regarding FATCA.

      Ian Johnston, DFSA Chief Executive, said: "The United States (US) and the United Arab Emirates (UAE) are close to signing an intergovernmental agreement that will facilitate FIs' reporting of information on their US accountholders. Certain DIFC firms will be required to report their US accountholder data to RoC, which will forward it to the UAE Ministry of Finance. The Ministry of Finance will then report the information onward to the US Internal Revenue Service. The aim of this workshop was to further outline the roles of the DFSA and the RoC and to provide the necessary information regarding the recent developments surrounding FATCA efforts."

      Khalid Al Zarouni, DIFC Registrar of Companies, said: "DIFC's compliance to FATCA reiterates our overall commitment to the inter-governmental agreement that is set to be signed between the UAE Ministry of Finance and the US Treasury Department. Under the agreement, DIFC is mandated to facilitate, update and inform the community of firms based at the financial hub about the necessary reporting requirements. However, DIFC recommends all corporates and foreign financial institutions to seek external guidance for interpreting the clauses of FATCA on a case-by-case basis."

      The event attracted some 200 participants who were welcomed by Michael Ridgeway, DFSA General Counsel, Khalid Al Zarouni, Registrar of Companies. They focused on the reporting process, rather than the substance of the law, and made the point that, because FATCA is a foreign law, neither the Registrar nor any other DIFC official including the DFSA is authorised or qualified to interpret or advise regarding the law. Attendees were counseled to seek advice about their specific circumstances from lawyers or other consultants who are qualified to give advice.

      - Ends -

      For further information please contact:

      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

      The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division.

      Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

      In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

      Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

    • 26 April 2015 — Dubai Delegation Visits India to Promote Collaboration Between The Financial Centres

      Click herehere to view PDF.

      India, 26 April 2015: A senior delegation from Dubai, led by the Chairman of the Dubai Financial Services Authority (DFSA), Mr Saeb Eigner, met with the Governor of the Reserve Bank of India (RBI), H.E. Dr Raghuram Rajan, in Mumbai, on Thursday, 23rd April, to enhance co-operation and to discuss initiatives to promote further growth in these two leading financial centres.

      Mr Saeb Eigner was joined by The Honourable Apurv Bagri, a Board member of the DFSA, Ian Johnston, the Chief Executive and Mark McGinness, the Director of International Relations.

      The delegation also met with the Deputy Governor of the RBI, Shri S.S. Mundra, and other prominent dignitaries from the financial services and other leading industries in India.

      This visit reflects the increasing ties between Dubai and India as leading international financial centres and important partners in supporting the growing investment and trade flows between the UAE and India.

      The DFSA has in place MoUs with the Securities and Exchange Board of India (SEBI) and the RBI. At the time, the Dubai regulator was the first regulator, after the China Banking Regulatory Commission, to sign an MoU with the respected RBI.

      Mr Saeb Eigner said: "We thank the Governor for a warm welcome. This is an important milestone in implementing the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to become a leading financial centre and a knowledge-based economy. Knowledge sharing between the two financial hubs is an important contributor to sustainable and continued growth."

      RBI Deputy Governor, Mr S.S. Mundra said: "The RBI and the DFSA have an excellent working relationship. I am pleased to see their increasingly close co-operation and the growth in the presence of Indian banks in the DIFC. The quality of supervision of all overseas branches and subsidiaries of Indian banks is obviously a matter of great importance to the RBI."

      Under the direction of Dubai International Financial Centre's (DIFC) President, His Highness Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Dubai's Deputy Ruler, the Centre has witnessed consistent year-on-year growth. The DFSA has entered into regulatory agreements with RBI in 2011. Indian banks have become well established at the DIFC and their business and banking assets have been increasing significantly. Combined assets of Indian banks in the Centre have almost tripled since 2011. There are currently eight of India's largest banks in the Centre, with increasing interest from banks to enter the DIFC. Building on the long-established trading links between India and the UAE, Dubai represents a natural hub for conducting trade finance, lending operations and capital-raising in the GCC, Africa and beyond.

      This month, H.E. Essa Kazim, the Governor of the DIFC, together with officials from the DFSA and DIFC Courts, welcomed an Indian delegation led by The Indian Union Minister of State for Finance, Mr Jayant Sinha. At the request of the Minister, the Governor shared best practices, used at the DIFC, in creating a successful financial hub with modern infrastructure. This illustrates our co-ordinated efforts, led by the Governor of the DIFC, to strengthen our relations with one of the most important economies in the world, in alignment with His Highness' vision. India is one of the UAE's top trading partners. The DFSA will seek to ensure that collaboration in the financial sector continues to grow strongly in parallel.

      - End -

      For further information please contact:
      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

      The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Saeb Eigner was appointed DFSA Chairman in August, 2011. He has been a member of the Board since October 2004 and served as Deputy Chairman since 2007.

      Formerly a Senior Manager at ANZ Grindlays Bank PLC, in London, Mr Eigner headed the Middle East and Indian Subcontinent Division of the private bank, which he left to found Lonworld, a private investment group in the early 1990's.

      Mr Eigner holds a Master's Degree in Management from London Business School. He is a Governor of London Business School and Chairman of its Audit and Risk Committee.

      He is the co-author of the management books Sand to Silicon (2003) and Sand to Silicon-Going Global (2009) and author of Art of the Middle East (2010).

      Mr Eigner holds and/or has held a number of Board appointments in banking, strategy, education, regulation and investment.

    • 22 April 2015 — DFSA Takes Action Against Hany Lotfy Awwad Abdelwahab

      Click herehere to view PDF.

      Dubai, UAE, 22 April 2015: The Dubai Financial Services Authority (DFSA) has imposed a fine of USD 45,000 (AED 165,150) and a restriction, on Mr Hany Lotfy Awwad Abdelwahab (Mr Abdelwahab) for providing the DFSA with false, misleading or deceptive information, and for obstructing the DFSA by failing to comply with DFSA investigative notices.

      The restriction imposed by the DFSA prevents Mr Abdelwahab from performing any functions in connection with the provision of financial services in or from the Dubai International Financial Centre (DIFC), for a period of 3 years, starting on 16 March 2015.

      On 27 March 2013, Mr Abdelwahab applied to become the Controller of a DFSA Authorised Firm.

      As part of the application process Mr Abdelwahab provided false information to the DFSA. During the DFSA's investigation into the provision of the false information it served investigative notices on Mr Abdelwahab requiring him to produce information and documents and to attend an interview with the DFSA. Mr Abdelwahab failed to produce the information and documents and present himself for interview.

      Mr Ian Johnston, Chief Executive of the DFSA said: "Those who apply to be licensed or approved by the DFSA, including as a controller of a firm, must provide the DFSA with correct and accurate information. Furthermore recipients of investigative notices must comply with their requirements. The DFSA will take appropriate action against anyone who provides it with false and misleading information or fails to comply with investigative notices when required."

      Neither Mr Abdelwahab, nor any of his companies, are regulated by the DFSA.

      A copy of the DFSA's Decision Notice can be found in the Public Register of the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

      - Ends -

      For further information please contact:

      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial freezone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

      Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

      In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

      Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

      Restricting Persons or Suspending or Withdrawing Authorisations: If the DFSA reasonably concludes that a person is not a fit and proper person to perform any functions in or in connection with the provision of Financial Services or Ancillary Services in the DIFC, whether or not they are Licensed Functions, it may by means of written notice restrict such person from performing any or all such functions.

    • 15 April 2015 — DFSA Fines Deutsche Bank AG for Serious Breaches

      Click herehere to view PDF.

      Dubai, UAE, 15 April 2015: The Dubai Financial Services Authority ("DFSA"), announced today, that it has fined the DIFC branch of Deutsche Bank AG ("DBDIFC"), USD $8,400,000 (AED 30,849,000) for serious contraventions.

      Those contraventions include misleading the DFSA, failures in DBDIFC's internal governance and systems and controls and in its client take-on and anti-money laundering processes.

      The DFSA's action follows an investigation into DBDIFC which focussed on its activities from January 2011 to January 2014. The DFSA was initially concerned that DBDIFC had failed to properly classify some of its customers as Clients under DFSA Rules and, therefore, deprived them of certain protections under the DFSA's regulatory regime. However, over the course of the investigation, it became clear that there were wider failings at DBDIFC.

      The DFSA therefore broadened the scope of its investigation. In particular, the DFSA uncovered that DBDIFC was aware that its Private Wealth Management business (PWM) was operating in breach of DFSA requirements, but did not take adequate steps to address the issue. In addition, certain staff of DBDIFC provided false information to the DFSA on several occasions about the nature and scope of activities undertaken by PWM. The DFSA also found material failings in DBDIFC's governance and has made directions to DBDIFC to remediate the DFSA's concerns.

      Mr Ian Johnston, Chief Executive of the DFSA said: "The provision of false information to the DFSA is a serious matter. One of the pillars of the DIFC regulatory framework is that Authorised Persons must deal with the DFSA in an open and co-operative manner and must disclose appropriately any information of which the DFSA would reasonably be expected to be notified."

      "The DFSA expects firms to have governance structures and systems and controls in place which encourage compliance with our rules and which promptly identify and remedy any regulatory failings. As demonstrated by the action against DBDIFC, the DFSA will take a robust stance where firms or individuals have breached these obligations. Had DBDIFC cooperated at an early stage of the investigation, the matter would have been resolved far sooner and at significantly less costs to both the DFSA and the firm. The fine imposed in this case reflects the seriousness with which the DFSA views these failings."

      The DFSA acknowledges that it was a small number of individuals in the firm who provided false information to the DFSA but believes that, with better governance within the Bank, this would have been identified and addressed earlier.

      Since January 2014, DBDIFC has worked openly and cooperatively with the DFSA to remedy the failings. The Bank has also made a number of changes to its operating model and improved its internal governance arrangements.

      DBDIFC agreed to settle the matter following the conclusion of the investigation and the fine was imposed by way of a Decision Notice agreed with the Bank. The DFSA therefore reduced the fine by 20% under the DFSA's policy for early settlement. Were it not for this discount, the fine imposed on DBDIFC would have been USD $10,500,000 (AED 38,561,250).

      A copy of the DFSA's Decision Notice can be found in the Public Register on the DFSA website under Regulatory Actions: https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

      - Ends -

      For further information please contact:

      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

      The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti- Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division.

      Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

      In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

      Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

    • 8 April 2015 — DFSA Takes Action Against Former Licensed Directors

      Click herehere to view PDF.

      Dubai, UAE, 8 April 2015: The Dubai Financial Services Authority (DFSA) announced today, that it has imposed restrictions on Mr Abdul Rahman Al Ansari (Mr Al Ansari) and Mr Anthony Robert D'Aniello (Mr D'Aniello) for providing the DFSA with false and misleading information.

      The restrictions imposed by the DFSA prevent Mr Al Ansari and Mr D'Aniello from performing any function in connection with the provision of financial services in or from the Dubai International Financial Centre (DIFC). Both may apply to the DFSA to vary or revoke the restrictions after a period of six years.

      Mr Al Ansari and Mr D'Aniello were former Licensed Directors of First Capital of Switzerland Investment Bank Limited (FCSIB), a former Authorised Firm in the DIFC. The restrictions follow an investigation in which the DFSA found that Mr Al Ansari and Mr D'Aniello:

      •   provided the DFSA with false, incomplete and misleading information regarding the shareholding structure of FCSIB and its controllers; and
      •   demonstrated a fundamental lack of integrity in that they failed to be candid and truthful in all their dealings with the DFSA.

      As a result, the DFSA has concluded that Mr Al Ansari and Mr D'Aniello are not fit and proper to be involved in the provision of financial services in the DIFC.

      Mr Ian Johnston, Chief Executive of the DFSA said: "Authorised Persons must deal with the DFSA openly and co-operatively, and must disclose appropriately and in a timely manner any relevant information. The DFSA will take appropriate action when anyone provides information, which is false and misleading."

      A copy of the DFSA's Decision Notice can be found in the Public Register of the DFSA website under Regulatory Actions. https://www.dfsa.ae/What-We-Do/ENFORCEMENT#Regulatory-Actions

      - Ends -

      For further information please contact:

      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      Editor's notes:

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial freezone in Dubai. The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Ian Johnston was appointed as Chief Executive of the DFSA in June 2012. Ian joined the DFSA in November 2006, as a Managing Director, to head-up the Policy and Legal Services Division.

      Ian was admitted to practice Law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was CEO of one of Australia's major Trustee Companies. During that time, Ian played a leading role in the Trustee industry and served on the National Council of the Trustee Corporations Association.

      In 1999, Ian joined the Australian Securities and Investments Commission where he held the position of Executive Director, Financial Services regulation, and spent several terms as an acting Commissioner. In 2005, Ian took up a position with the Hong Kong Securities and Futures Commission as a Special Advisor.

      Ian is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). He is a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board (FPSB).

      Restricting Persons or Suspending or Withdrawing Authorisations: If the DFSA reasonably concludes that a person is not a fit and proper person to perform any functions in or in connection with the provision of Financial Services or Ancillary Services in the DIFC, whether or not they are Licensed Functions, it may by means of written notice restrict such person from performing any or all such functions.

    • 6 April 2015 — The DFSA Strengthens Ties With Indonesian Regulator

      Click herehere to view PDF.

      Jakarta, 6 April 2015: The Dubai Financial Services Authority (DFSA) last week extended its formal ties with its counterparts in South East Asia, by entering into a Memorandum of Understanding (MoU) with its Indonesian counterpart, the Otoritas Jasa Keuangan (OJK).

      The MoU was signed by the Chief Executive of the DFSA, Mr Ian Johnston, and the Chairman of the OJK Board of Commissioners, Dr Muliaman D. Hadad.

      This signing followed a meeting a few days earlier in Bangkok between Mr Johnston and Khun Tipsuda Thavaramara, Deputy Secretary General of the Securities and Exchange Commission, Thailand (SEC). The SEC was among the first foreign regulators to sign an MoU with the DFSA in 2006 and, since then, the DFSA has forged formal links with its ASEAN counterparts, namely Malaysia's Bank Negara, its Securities Commission and the Monetary Authority of Singapore.

      Similarly to the DFSA, the OJK is the independent integrated authority. It regulates and supervises financial services institutions and all financial services sector activities in the Republic of Indonesia.

      Mr Ian Johnston, Chief Executive of the DFSA said: “I would like to thank the OJK Chairman, Dr Muliaman D. Hadad, and his fellow Commissioners, for their presence and for their welcome. Both the OJK and the DFSA, as signatories of the Multilateral MoU of the International Organisation of Securities Commissions (IOSCO), have already met the rigorous and respected standards of cooperation between capital market regulators. This enhancement of information sharing and assistance between the OJK and the DFSA to exchanging views on global regulatory reforms and capacity building is a critical step to ensuring confidence in each of our regulatory regimes. The DFSA looks forward to working with the OJK for the benefit of both Indonesia and our Centre in the UAE.”

      Mr Johnston added: "In addressing the authorisation and supervision of Islamic Finance, this initiative underscores Indonesia's position as the world's most populous Islamic market. Indonesia is a founding member of the Islamic Finance Standards Board (IFSB) and the OJK, with the Central Bank of Indonesia, has this week hosted a meeting of the IFSB Council, which I also attended.

      Dubai's Islamic Finance Initiative, led by His Highness Sheikh Mohamad Bin Rashid Al Maktoum, in His Highness's capacity as Ruler of Dubai, has inspired the Dubai International Financial Centre (DIFC), to become a centre for excellence in Islamic Finance in the Middle East and, with its tailor-made regulatory system for Islamic Finance. The DFSA looks forward to working with the OJK, under this MoU, to promote and develop this sector.”

      - End -

      For further information please contact:

      Corporate Communications
      Dubai Financial Services Authority
      Level 13, The Gate, West Wing
      Dubai, UAE
      Tel: +971 (0)4 362 1662
      Email: kmohaisen@dfsa.ae
      www.dfsa.ae

      The Dubai Financial Services Authority (DFSA) is the independent regulator of financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), a purpose-built financial free-zone in Dubai, the United Arab Emirates (UAE).

      The DFSA's regulatory mandate covers asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange and an international commodities derivatives exchange.

      In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships.

      Mr Ian Johnston was appointed Chief Executive of the DFSA in June 2012. Mr Johnston joined the DFSA in November 2006, as a Managing Director heading the Policy and Legal Services Division.

      Mr Johnston was admitted to practice law in Australia in the early 1980's and spent most of his career in the private sector. He held a number of senior positions within the financial sector and was the CEO of one of Australia's major trustee companies. During that time, he played a leading role in the trustee industry and served on the National Council of the Trustee Corporations Association.

      In 1999, Mr Johnston joined the Australian Securities and Investments Commission where he was Executive Director, Financial Services regulation, and spent several terms as an Acting Commissioner. In 2005, he took up a position as a special advisor with the Hong Kong Securities and Futures Commission.

      Mr Johnston is a past Chairman of the Joint Forum, which comprises representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In November 2013, he was elected to the Steering Group of IOSCO's Growth and Emerging Markets Committee. He is also a member of the Technical Committee of the IAIS, the global standard-setting body for insurance regulation, and is a member of the Board of Directors of the Financial Planning Standards Board.

      The Otoritas Jasa Keuangan (OJK) regulates and supervises financial services institutions on integrated basis throughout all of the financial services sector activities as stipulated under the Law No. 21 of 2011 of the Republic of Indonesia concerning Otoritas Jasa Keuangan. The main function of the OJK is to promote integrated regulatory and supervisory framework in the financial services sector and to protect the interests of consumers. The OJK performs its regulatory and supervisory duties over financial services activities in banking, capital markets, and non-bank financial institutions.

      Dr Muliaman Darmansyah Hadad was appointed Chairman of Board of Commissioners of the Financial Services Authority (OJK) on July 18th, 2012, by Presidential Decree.

      Dr Hadad graduated from the Faculty of Economics at University of Indonesia in 1984 before continuing his Master's degree at John F. Kennedy School of Government of Harvard University in Massachusetts, the U.S., in 1990 and earned Master of Public Administration degree a year later. In 1996, he was awarded a Ph.D. in business and economics from Monash University in Melbourne.

      Dr Hadad began his carrier as a member of general staff at the Mataram office of Central Bank of Indonesia in 1986. In 2003, he was promoted as Head of Financial System Stability Bureau, and two years later he served as Director of Directorate for Banking Research and Management. Dr Hada was promoted as Bank Indonesia Deputy Governor, by Presidential Decree, on December 22nd, 2006, and inaugurated on January 11th, 2007.

      Dr Hadad is also active as Head of Indonesian Sharia Economic Community and is a lecturer at several universities, including postgraduate lecturer at Trisakti University, and was once in charge as Head of Alumni Association of Faculty of Economics in 2007-2010.

      The former Secretary General of the Central Committee for the Indonesian Association of Economists or ISEI (2003- 2006 and 2006-2009), Dr Hadad was re-elected as Bank Indonesia Deputy Governor for his second term of office in December 2011, before being appointed to his current role.