Legal

Dubai Financial Regulator Launches Legal Action Against Deutsche Bank

Stephen Little, Reporter, London, 20 November 2013

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The Dubai financial regulator is suing Deutsche Bank over claims that the bank failed to hand over information relevant to an investigation into potential breaches of its rules by the bank's wealth management division.

The Dubai
financial regulator is suing Deutsche Bank over claims that the bank failed to
hand over information relevant to an investigation into potential breaches of
its rules by the bank's wealth management division.

The Dubai Financial Services Authority has brought the proceedings to enforce compliance with two investigative notices served on Deutsche Bank's wealth
management division, under Article 80 of the Regulatory Law 2004, requiring the
production of information and documents.

The regulator started its investigation in December last
year over suspected breaches of due diligence and assessing clients for money
laundering risks, according to documents filed with the Dubai International Financial Centre Courts on 31 October, which were released this week.

In July, the DFSA requested information on its wealth management
clients, including client names and details of relationship managers and due
diligence.

The DFSA said in the court documents that Deutsche provided
information on clients in Singapore,
but did not give details on 120 clients booked in Geneva.

According to the court documents, Deutsche defended its
actions by citing difficulties arising under Swiss law which the bank said restricted the release of the requested information.

Deutsche Bank declined to comment when contacted by this
publication.

The DFSA said in
a statement that it would make no further comment until the proceedings were
resolved. 

A hearing has been scheduled for 14 January 2014.

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