The Dubai Financial Services Authority (DFSA) has taken decisive action against a company and an individual for serious misconduct, including mismanagement of client funds and involvement in money laundering.
One notable case involved Peter Georgiou, a former private banker, who was fined nearly $1 million (around Dh3.6 million) for his role in facilitating money laundering using the “layering” technique. In this process, transactions are structured to create the false impression that funds have changed hands, while they remain controlled by the same individuals. Georgiou, who also withheld crucial information from his compliance team, was banned from working in the industry, effectively ending his career.
In a separate case, OCS International Finance was fined for misusing clients’ funds. The company misled a bank about the nature of deposited money and failed to protect client funds in separate accounts as required. Worse, they lent the money to a related party without informing the client, leading to non-repayment and significant financial problems.
DFSA’s Chief Executive, Ian Johnston, highlighted that the authority conducts thorough investigations, often taking months to complete. Despite this, he expressed hope that the recent cases indicate an improvement in industry compliance compared to previous years.