The Dubai Financial Services Authority (DFSA) has imposed a fine of $1.12 million (Dh4.113 million) on the DIFC branch of Bank of Singapore Ltd for a number of contraventions of the DFSA legislation, including for having inadequate systems and controls, including those relating to anti-money laundering (AML).
The bank was initially fined $2 million, but the amount was reduced after the bank offered the DFSA an enforceable undertaking to rectify the failings and agreed to settle the matter.
The DFSA found deficiencies in the bank’s AML business risk assessments; assessment of the risks posed by its clients; customer due diligence and its enhanced practices; identification of its clients’ sources of wealth and sources of funds; and suspicious activity reporting.
The DFSA also found that the bank had 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 permission to do so.
Ian Johnston, Chief Executive of the DFSA, said: “The DFSA has a high degree of concern over any AML related contraventions and will take appropriate action to make sure that the systems and controls implemented by authorised firms operating in the DIFC are robust.”