UAE’s DFSA introduces ‘whistleblowing’ regulatory regime

Dubai Financial Services Authority (DFSA) has launched its regulatory regime for ‘whistleblowing’. It’s the first of its kind to be introduced by a financial service regulator in the UAE and applies to all DFSA regulated entities operating in or from the Dubai International Financial Centre.

The regime provides enhanced legal protection for persons who report misconduct internally within DFSA regulated entities – including a DFSA authorised person, registered auditor, or a designated non-financial business or profession – or externally to their auditor, the DFSA or a law enforcement agency.

DFSA’s regime aims to improve the whistleblowing culture among these entities by increasing transparency around how they handle regulatory concerns, assess those concerns and, where appropriate, escalate those concerns.

According to DFSA, the policies and procedures put in place by the regulated entities should be appropriate to the nature, scale and complexity of that entity’s business and must be reviewed periodically to ensure they are adequate, effective and up to date. The regulated entity should also, as part of implementing these new requirements, inform all its officers and employees of the protections available to them.

It also states that a DFSA regulated entity must put in place measures to protect the identity of the whistleblower and to protect them from suffering any detriment.

Christopher Calabia, chief executive of the DFSA, explained: “Whistleblowers form a key part of a firm’s ability to detect, identify and escalate issues of misconduct, and the required whistleblower policies and procedures play an important role in encouraging appropriate disclosures. We expect all regulated entities to be ready to discuss and demonstrate the application of their policies and procedures when engaging with the DFSA.”

Recent agreements

In other news, DFSA just signed a Memorandum of Understanding (MoU) with the Central Bank of the Republic of Mauritius (Bank of Mauritius), to cooperate on the performance of their respective regulatory functions.

Read: Dubai Financial Services Authority signs MoU with Central Bank of Mauritius

In February, DFSA signed an MoU with India’s IFSCA. The agreement sets a framework for mutual assistance and exchange of information in areas, including money laundering and terrorism financing.

Read: Dubai Financial Services Authority signs MoU with India’s IFSCA