According to the DFSA, these contraventions include misleading the regulator, failures in its internal governance and systems and controls, and in its client take-on and anti-money laundering processes.
The action follows an investigation into DBDIFC from 2011 to 2014 which focused on its failure to properly classify some of its customers as clients under DFSA rules, depriving them of “certain protections”.
However, it widened the scope of its investigation after it allegedly became clear that there were wider failings at the bank.
It uncovered that DBDIFC was aware that its private wealth management business was operating in breach of DFSA requirements, but did not take adequate steps to address the issue.
The regulator also found that certain staff at DBDIFC provided false information to the DFSA on several occasions about the nature and scope of activities undertaken by its private wealth management business, as well as material failings in the company’s governance.
Ian Johnston, chief executive at the DFSA, said: “The provision of false information to the DFSA is a serious matter.
“One of the pillars of the DIFC regulatory framework is that authorised persons must deal with the DFSA in an open and co-operative manner and must disclose appropriately any information of which the DFSA would reasonably expect to be notified.”
The DIFC said DBDIFC has so far worked “openly and cooperatively” to remedy the failings.
