Compliance officers should take the time today to go on the website of the Dubai Financial services Authority, and read its Decision Notice on the Middle East branch of the Swiss Bank Mirabaud. The 48-page document, which imposes a major (USD$3m) civil fine upon the bank, reads like something out of a compliance lecture on what not to do. Whether it is discussing compliance failures regarding Politically Exposed Persons (Peps), massive due diligence shortcomings, the report shows that the bank totally and completely ignored banking best practices, while taking in fees that actually exceeded customer profits. Perhaps the names of the bank's senior officers might be an appropriate method of deterring others. Frankly, heads should roll in the bank's executive suite, and I don't just mean in Dubai.
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Obviously, the bank, whose obsession over fees trumped its compliance obligations, deserves to be named & shamed. We tip our hat to the DFSA for showing that Dubai's regulators are not only taking their obligations seriously, that they will specifically detail AML failures of financial institutions as a warning regarding what they will not tolerate in their financial marketplace.
Go on the DFSA website and read the report:
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