Dubai Bank Fined AED 11M for Inadequate Anti-Money Laundering Systems
- Publish date: Tuesday، 01 August 2023
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The Dubai Financial Services Authority (DFSA) on Tuesday for having inadequate anti-money laundering (AML) systems and controls between June 2018 and October 2021.
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The fine comprises the disgorgement of $975,000 (Dh3.58 million), which represents Mirabaud's financial gain from its violations in the form of fees and commission. Mirabaud consented to settle the case, which resulted in a decrease in the fine from $3.9 million (Dh14.322 million).
The DFSA claimed that it discovered weaknesses in Mirabaud's anti-money laundering systems and controls, which meant that it handled transactions for a collection of nine connected customer accounts maintained by the same relationship manager. This generated several questions about possible money laundering, according to the DFSA.
The report demonstrated how the transactions were carried out "outside the accounts' expected activity, for purposes prohibited by Mirabaud's own policies, inconsistent with the client profiles, and supported by information inconsistent with that which was already held about the customers."
This demonstrated how weak the bank's anti-money laundering policies and processes were.
Since then, both the relationship manager in charge of these clients and the people who served as the senior executive officer and the chief compliance officer during the time these failures were made have left Mirabaud.
Ian Johnston, Chief Executive of the DFSA said, “By failing to ensure that its AML systems and controls were effective, Mirabaud did not recognize clear indicators of potential money laundering or take the appropriate action when it had concerns about customers’ activity. The level of penalty imposed on Mirabaud reflects the importance of AML compliance in maintaining confidence in the integrity of the DIFC.”