24 October 2016 — Rasmala Investment Bank Limited Resolves Compliance Concerns with the DFSA
Dubai, UAE, 24 October 2016: The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking (EU) from Rasmala Investment Bank Limited (RIBL), a company incorporated in the Dubai International Financial Centre and a DFSA Authorised Firm.
The EU resulted from DFSA concerns about RIBL's anti-money laundering (AML) systems and controls, and about whether it had carried out the Financial Service of Providing Custody to its clients without being licensed to do so.
Though RIBL does not agree with the DFSA's findings, it acknowledges the DFSA's concerns and agrees to engage an independent expert to ensure that the concerns are remedied.
RIBL also agreed to pay a financial penalty of USD 60,000 (AED 220,200) to the DFSA of which USD 30,000 (AED 110,100) is payable on or by 17 November 2016. The remaining USD 30,000 (AED 110,100) is suspended indefinitely and becomes payable if RIBL fails to comply with the EU.
The DFSA acknowledges that RIBL co-operated fully with the DFSA's inquiries, and has already carried out significant remedial work.
Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA's action again highlights the importance of firms having robust and effective AML systems and controls. The DFSA also reminds firms to operate within the scope of their licence. The DFSA urges firms to review their systems and controls and operations regularly, and to identify and remedy any concerns."
A copy of the Enforceable Undertaking can be found in the Public Register of the DFSA website under Regulatory Actions:
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For further information please contact:
Dubai Financial Services Authority
Level 13, The Gate, West Wing
Tel: +971 (0)4 362 1662
The Dubai Financial Services Authority (DFSA) is the independent regulator of financial 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 also exercises delegated enforcement powers under the DIFC Companies Law. These include powers to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar of Companies (Roc).
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 the Policy and Legal Services Division.
Ian was admitted to practice Law in Australia in the early 1980s and has 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 comprise representatives of the major international regulatory standard-setters (IOSCO, IAIS and the Basel Committee). In August 2016, he was re-elected to IOSCO's Growth and Emerging Markets Steering Committee, a position he has held since 2013. He is also a member of the Financial Stability and Technical Committee (FSTC) of the IAIS, the global standard-setting body for insurance regulation, and was a member of the Board of Directors of the Financial Planning Standards Board (from Jan 2011 — Mar 2016).