Dubai Financial Regulator Sues Deutsche Bank on Non-Disclosure Allegation

Deutsche Bank is being sued in a rare court action by the Dubai financial regulator on the claim that it did not hand the watchdog information it requested under an investigation.

The Dubai Financial Services Authority (DFSA) opened its probe at the end of 2012 over suspicions that the Dubai arm of Deutsche's Private Wealth Management business has breached rules on customer due diligence and money laundering controls.

"The Claimant at all material times believed, and believes, that the Defendant is or may be able to give information and/or produce documents which are or may be relevant to that investigation," says the DFSA's claim, filed at the Dubai International Financial Centre (DIFC) courts on 31 October, but only now made publicly available.

"In particular, the Claimant believed and believes that the Defendant has within its possession or control information and/or documents which may assist in establishing whether its Private Wealth Management business line has operated consistently with the requirements of the provisions identified above."

However, the DFSA claims that not all the documentation it requested over several months was handed over. It is asking the courts to order Deutsche to hand over all documents and information requested, as well as award legal costs related to the case back to the DFSA.

"The DFSA will make no further comment until the proceedings are resolved," said the regulator.

Deutsche is due to file its defence against the DFSA's claim by 5 December. Unless the claim is withdrawn, a trial would take place on 31 July, 2014.

At the time of publishing Deutsche, which is Germany's largest bank, had not replied to IBTimes UK's request for comment.