The DFSA claims it found deficiencies in the bank’s AML business risk assessments, client risk assessments, customer due diligence practices, suspicious activity reporting and identification of clients’ sources of funds.
The regulatory authority says it also found that the bank acted outside the scope of its DFSA licence “by arranging deals in investments in relation to rights under long-term insurance contracts, when not authorised to do so”. The bank has since applied to the DFSA for the requisite permissions.
The fine was reduced from an original amount of $2 million to $1.1 million as the bank “offered the DFSA an Enforceable Undertaking (EU) to remediate the failings and agreed to settle the matter”. The bank has also agreed to bring in an external compliance expert in its efforts to comply with obligations.
