Dubai Financial Services Authority (DFSA) is investigating Germany-based Deutsche Bank over alleged shortcomings in its customer due diligence and anti-money-laundering procedures, The National has reported.
DFSA said that it had started proceedings against the bank’s Dubai branch in the DIFC Courts to compel the bank to produce documents relevant to the inquiry.
According to DFSA, the proceedings were brought for the purpose of enforcing compliance with two investigative notices served on Deutsche Bank’s DIFC branch under Article 80 of the Regulatory Law 2004, requiring the production of information and documents.
The regulator said that Deutsche Bank has not provided the full information requested by it and added that the bank has raised the issue of client confidentiality under Swiss law, stating that many of the bank’s clients were registered with its Geneva branch.
Deutsche Bank is yet to provide the required information after DFSA officials visited the bank’s Dubai branch in August.
According to the report, the bank did not report suspicious transactions to the police in a timely manner, provoking questions about whether the bank’s internal compliance and risk management systems were adequate.