DFSA takes decisive action by finalising eight enforcement cases in 2024 against individuals, firms

The Dubai Financial Services Authority (DFSA), the independent regulator of financial services, conducted in, and from, the Dubai International Financial Centre (DIFC) has, 2024 year to date, taken eight enforcement actions and issued 24 alerts. These actions targeted individuals and entities that undertook unauthorised financial services activities, misled investors, failed to comply with anti-money laundering obligations, and misled the DFSA or obstructed DFSA investigations – compromising the integrity of the DIFC financial services sector.

This comprehensive enforcement effort reaffirms the DFSA’s commitment to safeguarding the integrity of financial services within the DIFC. Through a robust regulatory framework, the DFSA ensures accountability, transparency, and compliance, fostering a secure and trustworthy financial services industry in the DIFC that aligns with the highest international standards.

Among the most notable cases, the DFSA imposed a fine of nearly USD 1 million on a former Relationship Manager at a DFSA-authorised private bank for deceptive conduct, including providing misleading information and falsifying client communications, that facilitated the money laundering practice of layering. In another case, a firm was fined USD 720,905 for conducting unauthorised financial activities, failing to protect client monies properly, and obstructing a DFSA investigation. The firm’s Senior Executive Officer was also fined USD 186,003 and prevented from participating in DIFC’s financial services sector.

Overall, these decisive actions resulted in fines exceeding USD 2.5 million, including USD 1.3 million imposed on individuals and USD 1.2 million on firms. Three individuals were restricted and prohibited from operating within the DIFC, and the DFSA accepted an Enforceable Undertaking from another firm, committing it to take agreed remedial actions.

Patrick Meaney, Managing Director, Head of Enforcement at the DFSA, said: “These actions underscore the DFSA’s steadfast commitment to upholding the highest regulatory standards in the DIFC. The true value of enforcement is its ability to deter wrongdoing and foster compliance.

By taking decisive action against misconduct, we send a clear message that non-compliance will not be tolerated. These measures are critical to protecting investors, customers, and the public, while safeguarding the integrity of financial services within the DIFC.”

Looking ahead, the DFSA remains committed to developing, administering, and enforcing world-class regulation of financial services within the DIFC. As part of its strategy and ongoing mission, the DFSA will continue to implement stringent enforcement measures and provide clear regulatory guidance to ensure that all entities operating within the DIFC adhere to the highest standards of regulation and ethical conduct.