The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking (EU) from Kuwait Turkish Participation Bank (Dubai) Limited (KTD), a company incorporated in the Dubai International Financial Centre and a DFSA Authorised Firm.
The EU resulted from a DFSA investigation which identified deficiencies and areas for improvement in KTD's systems and controls regarding risk management, anti-money laundering (AML) and corporate governance. The DFSA had concerns that KTD may not have:
In light of the DFSA's concerns, KTD agreed to pay a financial penalty of USD150,000 (AED551,250) to the DFSA of which USD50,000 (AED183,750) is payable on or by 8 July 2015. The remaining USD100,000 (AED367,500) is suspended indefinitely and becomes payable if KTD fails to comply with the EU.
KTD also agreed to improve its corporate governance arrangements and engage an independent compliance expert to ensure the deficiencies identified by the DFSA's investigation have been remedied.
The DFSA notes that no specific contraventions of DFSA Laws and Rules by KTD are cited in the EU. The DFSA also acknowledges that KTD co-operated fully with the DFSA's investigation and has already carried out significant remedial work.
Mr Ian Johnston, Chief Executive of the DFSA said: "The DFSA's action highlights the importance of Firms having robust and effective risk management, corporate governance and AML systems and controls. The DFSA urges Firms to review their systems and controls regularly to identify and remedy any deficiencies."
A copy of the Enforceable Undertaking can be found in the Public Register of the DFSA website under Regulatory Actions: Your-Resources/Public-Register#Regulatory-Actions
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