The Dubai Financial Services Authority (DFSA) has found a former private banker working in the Dubai International Financial Centre (DIFC) guilty of fraud and fined him Dhs73,400 ($20,000), it was announced in a statement.
The banker, Nikhil Das, has also been restricted for six years from “performing any functions in, or in connection with, the provision of a financial service in the DIFC,” the statement stated.
The announcement follows the conclusion of a DFSA investigation into the conduct of Das when he was a former employee of a DFSA authorised firm. The name of his former employer was not revealed.
Between July 2012 and January 2013, Das executed two transactions, valued at Dhs12,478,000 ($3.4 million) and Dhs18,350,000 ( $5 million) respectively, on behalf of a client without his consent.
Das also forged the client’s signature on a number of documents and sent fraudulent letters and account statements, containing false and misleading information about his investments, said DFSA.
However, the client did not suffer any financial loss as a consequence of Das’ fraudulent conduct and unauthorised investments.
The former banker co-operated fully with the investigation and acknowledged forging the client’s signature, executing unauthorised investments and providing the client with falsified documents, said DFSA.
Das agreed to settle the DFSA’s concerns by making a settlement offer, in the form of an Enforceable Undertaking (EU), to comply with the sanctions.
The EU requires Das to comply with all of its conditions, but if any condition is violated, then the DFSA may enforce it in the DIFC Courts, the statement said.
Ian Johnston, CEO of the DFSA said: “Consumers who rely on the advice and services of private bankers are entitled to expect high standards of conduct from them. The DFSA expects private bankers who provide services in or from the DIFC to act ethically and with integrity. Bankers who do not meet these minimum standards will have to answer to the DFSA.”
He added: “The DFSA will continue to uphold high standards of probity and will not permit any individual, who does not meet its standards, to provide financial services in the DIFC.”