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The Dubai Financial Service Authority (DFSA) levied a fine of $3M on the Middle Eastern bank, Mirabaud Limited, for inadequate compliance with Anti-Money Laundering (AML) regulations.
Mirabaud’s banks were fined $3M by Dubai’s regulatory authority, DFSA, for non-compliance with anti-money laundering regulations. The system had many loopholes that allowed nine interconnected bank accounts to transfer money from one to another, raising the threat of money laundering and suspicious transactions. The suspicious behaviours indicated these accounts’ participation in the money laundering layering process. The bank has not gathered all the information about these interconnected banks during the customer’s due diligence.
During the investigation, DFSA found no evidence of money laundering but detected many red flags in Mirabaud’s anti-money laundering (AML) compliance system. According to the evidence, these banks need to rectify the loopholes in their systems since their customers have made large transactions over the last three years, and the banks have failed to identify and report these suspicious activities.
Mirabaud Bank was fined for its actions between 2018 and 2021. Furthermore, the Bank disgorged $975,000 of commissions and fees it received from the country. At last, the bank has to pay $3,900,000 as they settle a deal with DFSA.
Chief executive of DFSA, Ian Johnston, stated, “The level of penalty imposed on Mirabaud reflects the importance of AML compliance in maintaining confidence in the integrity of the DIFC.”