Deutsche Bank ordered to hand over client info to Dubai regulator

Dubai’s financial watchdog last year sued German lender for refusing to hand over details of wealth management clients
Deutsche Bank ordered to hand over client info to Dubai regulator
By Daniel Shane
Sun 09 Feb 2014 12:16 PM

A Dubai court has ordered the local unit of Deutsche Bank to hand over documents relating to its wealth management clients after the German lender was successfully sued by the regulator of the emirate’s financial free zone.

The Dubai Financial Services Authority (DFSA), which regulates the Dubai International Financial Centre (DIFC), began probing Deutsche Bank’s asset management division in December 2012 over potential breaches of due diligence and assessing clients for money laundering risks.

When Deutsche Bank declined to hand over details regarding 120 clients in Switzerland, citing Swiss financial privacy laws, the DFSA in October 2013 claimed an injunction through the DIFC Courts.

In a statement issued on Sunday, the DIFC Courts declared that Deutsche Bank was in material non-compliance with the DFSA’s requirement to produce information and documents.

According to the ruling, Deutsche Bank now has 28 days to provide information on wealth management clients booked between 1 January 2011 and 30 June 2013. It must also hand over details of the relationship managers assigned to each client, as well as copies of minutes of executive committee meetings relating to discussions and decisions to approve private wealth management procedures introduced from April 2013.

DIFC Courts also ordered Deutsche Bank provide minutes of monthly team meetings for its private wealth management division, as well as pay $100,000 in costs to the DFSA.

The ruling said that Deutsche Bank had consented to the court orders to produce the specified information and agreed to pay DFSA’s costs.

Global financial regulators around the world are probing the role of large banks and brokers for their roles in cases ranging from manipulation of global rates to mortgage-related practices.

Last year Deutsche Bank set aside an extra $1.62bn to cover potential litigation costs, almost wiping out its third quarter profit.

A Deutsche Bank spokesperson declined to comment when contacted by Arabian Business.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.