Ex-DIFC Exec Fined $7,500 For Falsifying Information

Tareck Fouad Farah was found guilty of issuing a letter containing false information.



The Dubai Financial Services Authority (DFSA) announced that Tareck Fouad Farah, a former senior executive officer (SEO) of a Dubai International Financial Centre (DIFC) firm, has been fined Dhs27,525 ($7,500) for issuing a letter containing false information.

The DFSA did not reveal his details about his firm.

Farah had issued a bank reference letter in April 2009 on behalf of a client containing false information that was addressed to another financial institution, said DFSA.

While the letter stated that the client held a portfolio of securities valued at approximately Dhs18,350,000 ($5 million), the actual value of the portfolio was only around Dhs697,000 ($190,000).

The matter was brought to the DFSA in December 2012.

“By engaging in this conduct, DFSA was concerned that Farah had breached DFSA principles requiring SEOs to perform their functions with integrity, skill, care and diligence,” a DFSA statement said.

However, Farah co-operated fully with the DFSA’s investigation and no person suffered any financial loss, the authority said.

The former SEO made a settlement offer in the form of an Enforceable Undertaking (EU), in which he agreed to pay the financial penalty.

Stephen Glynn, head of Enforcement at the DFSA said: “The DFSA expects SEOs to perform their functions to the high standards required of them and as set out in the DFSA’s laws and rules.

“SEOs of authorised firms occupy positions of trust and their stakeholders are entitled to rely upon the integrity of their statements, whether they be written or oral. In this instance the written statement was prepared for use by another financial institution and the DFSA was concerned the letter may have been relied upon to extend credit or for some other purpose.”

The DFSA has been stringently enforcing ethical standards in DIFC firms, and recently announced that another former DIFC banker had been fined Dhs73,400 ($20,000) for fraud.