Dubai tribunal upholds sanctions on senior banker for ‘serious misconduct’

The FMT issued its decision upholding the DFSA’s findings and imposing sanctions including a fine of $175,000, a ban from holding office in or being an employee of certain DFSA-regulated entities and a restriction from performing any function in connection with the provision of financial services in or from the Dubai International Financial Centre (DIFC).

Rollet was formerly the senior executive officer and a licensed director of La Tresorerie Limited (LT), which is now in liquidation.

The DFSA took action against Rollet last year due to multiple breaches of DFSA legislation arising from his involvement in LT providing physical cash to its clients in breach of DFSA rules. The DFSA has previously taken action against La Tresorerie for its wrongdoing.

The unlawful cash service operated between February 2015 and January 2017 and involved the use of false invoices and transferring client money without the clients’ knowledge or consent to unregulated companies outside the DIFC.

It also involved the transportation of large amounts of physical cash from the UAE to foreign countries, an activity associated with a high risk of money laundering.

Rollet disputed the DFSA’s findings and referred the action to the FMT for review but the FMT imposed the sanctions after finding that Rollet was knowingly involved in the wrongdoing arising from LT’s provision of the unlawful cash service, that he failed to act with integrity and provided false and misleading information to the DFSA about his involvement.

Rollet is a senior banker with over 25 years’ experience, a statement said.

The FMT said: “Mr Rollet, a senior banker, did not need compliance training to know full well that these cash schemes were obviously improper and a potential vehicle for serious crime. This was a brazen disregard of important principles by a senior executive.

“The financial system only works if its key players are fit and proper and Mr Rollet demonstrated to us that in these matters he was neither. There has been no recognition by Mr Rollet of the seriousness of these matters.”

F Christopher Calabia, chief executive of the DFSA, added: “The DFSA continues to place a high priority on holding to account senior individuals who are at the centre of wrongdoing by firms. As upheld by the FMT, the DFSA’s action found that Mr Rollet led, was fully aware of and actively participated in LT’s unlawful cash service, leading to over $7 million worth of physical cash withdrawals.

“On being found out, Mr Rollet then sought to deflect responsibility by misleading the DFSA as to his involvement, shifting responsibility to others and portraying the physical cash withdrawals as an insignificant part of LT’s business. This is indefensible.”