Deutsche Bank’s DIFC branch has been fined $8.4m by Dubai Financial Services Authority (DFSA) for rules violations.
The fine has been imposed owing to "serious contraventions" which includes "misleading the DFSA, failures in internal governance and in its client take-on and anti-money laundering processes".
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Following a probe into the bank which focused on its activities from January 2011 to January 2014, the regulator revealed that the bank’s Private Wealth Management business (PWM) was operating in breach of DFSA rules and had not taken necessary steps to address the issue.
The watchdog said that they were misled by certain staff of the lender during the probe. However, no evidence of financial detriment to the bank’s customers has been found.
In response, Deutsche Bank said, "We have reviewed and subsequently upgraded our client on-boarding processes, and we are pleased the DFSA has acknowledged that Deutsche Bank has taken steps to remedy the matters described in the decision notice."
The German lender is the first authorised financial services company to face the new fine structure implemented by DFSA last August, when it phased out a cap of $100,000 on corporate fines for regulatory breaches.
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