Dubai regulator fines investment bank over rules violations

Dubai Financial Services Authority slaps $56k fine on United Investment Bank over lax money laundering systems
Dubai regulator fines investment bank over rules violations
Dubai International Financial Centre. (For illustrative purposes only)
By Staff writer
Wed 20 May 2015 01:55 PM

The Dubai Financial Services Authority (DFSA) said on Wednesday it has imposed a fine of $56,000 on United Investment Bank Limited (UIB).

The fine was imposed following a DFSA investigation which found that, from April to July 2014, UIB contravened a number of the DFSA’s rules, dealing with systems and controls to prevent money laundering.

As well as imposing the fine, the DFSA directed UIB to implement a plan to address the problems with its systems and controls and engage a suitably experienced and independent third party to oversee UIB’s take-on of new clients.

It is not alleged that any money laundering took place, DFSA added in a statement.

UIB and its senior management, including its SEO, have accepted responsibility for the contraventions and have cooperated fully with the DFSA to resolve the shortcomings in UIB’s AML systems and controls, the statement said.

It added that UIB agreed to settle the matter following the conclusion of the investigation and the fine was imposed by way of a Decision Notice agreed with UIB.

Ian Johnston, chief executive of the DFSA said: “Firms in the DIFC must conduct proper due diligence on clients and have effective systems and controls to prevent opportunities for money laundering. The DFSA will take appropriate action against any person who does not comply with the DFSA’s AML rules."

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