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11. Foreign Secrecy Laws in the DIFC

11.1 Foreign banking secrecy laws do not apply in the DIFC and do not apply to DFSA regulated entities and their clients in relation to financial services business conducted in or from the DIFC. This is because foreign banking secrecy laws or confidentiality provisions do not have extraterritorial effect, that is, outside the jurisdiction in which they are enacted.

11.2 Similarly the DFSA does not have extraterritorial or direct access to confidential client information if the client's business is booked, held, serviced and managed exclusively in foreign jurisdictions subject to a strict banking secrecy regime.

Example: A request by the DFSA to a foreign regulator or a financial institution operating in a secrecy jurisdiction for disclosure of confidential client account information will be governed by and be subject to the secrecy laws of the foreign jurisdiction.