The Dubai Financial Services Authority (DFSA) has accepted an Enforceable Undertaking (EU) from Arqaam Capital Limited (Arqaam), a company incorporated in the Dubai International Financial Centre (DIFC), and a DFSA Authorised Firm.
The EU resulted from a DFSA investigation following a periodic DFSA risk assessment that focused on Arqaam’s compliance with anti-money laundering (AML) obligations in the DIFC. The risk assessment identified a number of deficiencies in Arqaam’s AML systems and controls, assessment of customer AML risks and customer due diligence (CDD) practices.
Although the EU does not mention any specific contraventions of DFSA-administered laws or regulations, the DFSA is concerned that Arqaam may not have:
- acted with due skill, care and diligence;
- ensured that its affairs were managed effectively and responsibly; and
- complied with certain DFSA AML Rules requirements.
In light of the DFSA’s concerns, Arqaam will engage an independent compliance expert to assist the firm to remedy the AML deficiencies the DFSA has identified and any other issues the expert may identify.
Arqaam also agreed to pay a financial penalty of USD50,000 (AED183,652). Arqaam co-operated fully at an early stage of the DFSA investigation.
Mr Ian Johnston, Chief Executive of the DFSA said: “Having robust and effective AML systems and controls, including customer AML risk assessments and CDD practices, are important in deterring financial crime. Firms should review their AML systems and controls regularly and ensure staff are given appropriate training concerning the firm’s AML responsibilities. Furthermore, willingness to co-operate with the DFSA and remediate regulatory deficiencies at an early stage mitigates risks for both the firm and the DIFC.”