Deutsche Bank AG (Deutsche Bank) has been fined $8.4m (€5.7m) by the Dubai Financial Services Authority (DFSA) for contraventions including misleading the DFSA, failures in the banks internal governance and systems and controls, and in its client take-on and anti money laundering processes.
The fine relates to an investigation conducted by DFSA between Janaury 2011 and January 2014. According to the regulator, while the initial investigation was caused by concerns about the classifications of customers under DFSA rules, the scope of the investigation soon broadened to include allegations of misleading the DFSA.
Ian Johnston, chief executive of the DFSA said: “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 Deutsche Bank, the DFSA will take a robust stance where firms or individuals have breached these obligations.”
“Had Deutsche Bank 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” he added.
Deutsche Bank 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 initial $10.5m (€9.1m) by 20% under the DFSA’s policy for early settlement.