A Bloomberg report said Deutsche Bank AG is set to turn over documents regarding the operations of its wealth management division, which is currently under investigation by the Dubai Financial Services Authority. The emirate's financial free zone regulator has taken the domestic business of the Frankfurt-based lender to court for suspected violations of the DFSA's rules, the report said.
Since proceedings against the German bank started at the Dubai International Financial Centre Courts began on October 31 fo last year, the DFSA has been forcing the financial institution to comply with its probe. In a DFSA statement made yesterday, Deutsche Bank has agreed with the regulator to turn over the documents within 28 days and pay the costs of the regulator.
According to an October filing that was released to the public on November 17, the Dubai regulator has been determining whether the Deutsche Bank breached laws in relation to due diligence, risk assessment requirements, having adequate systems and controls, client classification and suitability and key information. On the other hand, the German bank said that by disclosing certain information to DFSA, the bank will be violating Swiss law.
Bloomberg said that the legal case pursued against Deutsche Bank will the first done by DFSA with the Dubai courts since 2009 and the fourth case overall filed in the past seven years. DFSA did not disclose additional details regarding the details of its investigation in the wealth management business of Deutsche Bank, but said it will be continuing its prove further. Deutsche Bank spokesman Michael Lermer, meanwhile, refused to comment to Bloomberg regarding the probe.
The news outlet said that on July 31 last year, DFSA imposed an August 18 deadline on Deutsche Bank to provide the regulator about information regarding its private wealth management clients, including each of their risk assessment rating, bank employee assigned to the client and that whether a client agreement had been exercised by the business unit. When DFSA agents paid a visit on August 27, Deutsche Bank invoked issues of Swiss law and said it will not be providing the information the former requested.
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