Saxo Bank Dubai falls foul of anti-money laundering rules

DSFA censured the lender for failing to carry out adequate client classification under DIFC rules
Saxo Bank Dubai falls foul of anti-money laundering rules
DFSA said an investigation showed the unit had referred clients to its parent Saxo Bank in Denmark without carrying out adequate client classification
By Joanne Bladd
Sun 20 Mar 2011 03:16 PM

Dubai
Financial Services Authority, the regulator of the emirate’s tax-free business
park DIFC, on Sunday censured Saxo Bank Dubai for breaching anti-money
laundering rules and systems.

This
"increased the risk of Saxo Bank’s DIFC business being used for the
purposes of money laundering," the Authority said in an emailed statement Sunday.
 

"However,
the DFSA found no evidence of any money laundering having taken place."

Saxo
Bank, the privately-held Danish lender, opened an office in Dubai in May
2009 to support its local clients.

DFSA
said an investigation showed the unit had referred clients to its parent Saxo
Bank in Denmark without carrying out adequate client classification, as
outlined by DIFC rules.

Saxo
Bank admitted it had breached rules by failing to secure data such as
sufficient and satisfactory verification of client identities, addresses and
sources of wealth; and failing to adequately monitor client transactions, DFSA
said.

The
Authority in January warned companies operating in DIFC to be vigilant
about the outflow of assets from Tunisia and Algeria, following anti-government
protests in the countries.

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