The Dubai Financial Services Authority has imposed a fine of US$85,191 (312,650 dirham) on Clements (Dubai) Ltd for conducting prohibited insurance activities.

The fine comes hot on the heels of a DFSA investigation conducted in collaboration with the Insurance Authority of the United Arab Emirates.  The investigation found that, between January and July 2014, CDL engaged in prohibited insurance activities in breach of DFSA-administered rules.  The fine includes the giving-up of commissions that CDL earnt from its prohibited activities.

CDL is authorised by the DFSA to provide the Financial Service of Insurance Intermediation in the Dubai International Financial Centre, which the DFSA regulates. CDL is prohibited from intermediating a contract of insurance for a risk situated in the UAE unless the risk is situated in the DIFC or the contract is one of re-insurance.

The DFSA’s investigation found that CDL transgressed on 21 occasions and failed to have adequate systems and controls in place to detect, monitor and prevent such activities from occurring.

The DFSA discounted the amount of the fine imposed on CDL because it reported its own misconduct to the regulator, taking steps to make amends and co-operating fully with the DFSA's investigation. It also appointed a new senior executive officer and compliance and money laundering reporting officer of its own accord.

CDL agreed to settle the DFSA's action at an early stage of the investigation, and therefore qualified for a further discount under the DFSA's policy for early settlement, thereby avoiding a fine of US$102,191 or 375,040 dirham.