Dubai: Dubai’s financial services watchdog DFSA confirmed that an enforcement action taken against Gilles Rollet, a former director at a DIFC-licensed firm.
Rollet, formerly with La Tresorerie Ltd., had been fined $175,000 in November last, and prohibited from holding office in Dubai Financial Services Authority (DFSA)-regulated entities. The action was taken due to “multiple breaches of DFSA legislation arising from his knowing involvement in LT providing physical cash to its clients in breach of DFSA Rules.”
Rollet disputed the DFSA’s decision and referred the case to the Financial Markets Tribunal (FMT) for further review. The FMT said that Rollet’s claims of being unaware of the cash deals were not accepted. The tribunal said that “he knew the detail or deliberately chose not to know some of it, and did not instruct anyone internally or externally to provide advice on the unlawful cash service, probably because he knew the advice would be to stop it, given that it was obviously improperly.
“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.”
The FMT findings
- As a senior banker with over 25 years’ experience, Rollet was well aware of compliance matters, including the increased risks involved in dealing with physical cash;
- Rollet was knowingly and directly involved in ‘Unlawful Cash Service’, including by actively participating in it through the use of his own bank account and delivering large sums of cash to the firm’s clients;
- Rollet signed and used a letter on LT-headed paper to support the transportation of large amounts of cash through Dubai airport, which incorrectly stated that the client money being carried was beneficially owned by LT;
- Rollet’s submissions that he was unaware of aspects of the unlawful cash service and relied on others to advise him on its propriety were not accepted. In fact, the FMT found that he knew the detail or deliberately chose not to know some of it, and did not instruct anyone internally or externally to provide advice on the unlawful cash service, probably because he knew the advice would be to stop it, given that it was obviously improperly.
- Rollet misled the DFSA as to his actions related to the unlawful cash service involving the use of his personal bank account and the delivery by him of physical cash to LT clients overseas.
