Dubai regulator fines Arqaam for compliance failures

Salary-payDubai-based asset manager Arqaam Capital has been fined $50,000 and told to engage an independent compliance expert to correct failings in anti-money laundering processes spotted by the Dubai Financial Services Authority (DFSA).

The DFSA, which regulates companies based in the Dubai International Financial Centre (DIFC), says an investigation found a number of weaknesses in Arqaam’s anti-money laundering systems and customer due diligence practices.

“Having robust and effective anti-money laundering systems and controls… are important in deterring financial crime,” says Ian Johnston, chief executive of the DFSA. “Firms should review their anti-money laundering systems and controls regularly and ensure staff are given appropriate training concerning the firm’s anti-money laundering responsibilities.”

Arqaam Capital is not the first DIFC firm to be fined for weaknesses in client monitoring. In April, the DFSA said it had fined the DIFC operation of Deutsche Bank a record $8.4 million for failures in its client take-on processes, including inadequate measures to prevent money laundering.

The DFSA says Arqaam Capital cooperated fully at an early stage of the investigation.

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