The Dubai Financial Services Authority has accepted an enforceable undertaking from Rasmala Investment Bank on the subject of its money-laundering controls.

The agreement resulted from the regulator's criticism of the banks AML systems and controls and its provision of custodials services to its clients without the appropriate licence.

Though the bank does not agree with the DFSA's findings, it has agreed to hire an independent expert to ensure that they are remedied. It has also agreed to pay a financial penalty of US$60,000 (220,200 dirham) to the DFSA of which $30,000 (110,100 dirham) should have been paid by now. The remainder is suspended indefinitely and becomes payable if the bank fails to comply with its agreement.

The DFSA acknowledges that the bank co-operated fully with its inquiries and has already done significant remedial work. The DFSA is urging firms to review their systems and controls and operations regularly, and to identify and remedy any problems.