Dubai Regulator Fines Former BNP Paribas Private Banker For Fraud
Sandra Kilhof, Reporter, 25 September 2013
The Dubai Financial Services Authority has fined a former private banker for BNP Paribas, to pay a financial penalty of AED73,400 ($20,000) and be restricted from performing any financial services functions in the Dubai International Financial Centre over the next six years.
The Dubai Financial Services Authority has fined a former private banker for [tag|BNP Paribas|]BNP Paribas[/tag], to pay a financial penalty of AED73,400 ($20,000) and be restricted from performing any financial services functions in the Dubai International Financial Centre over the next six years.
Nikhil Das has been under investigation by the DFSA after he executed two transactions, valued at AED12,478,000 ($3.4 million) and AED18,350,000 ($5 million) respectively, on behalf of a client without his consent. Both incidents happened between July 2012 and January 2013 and while Das was employed by the French banking giant BNP Paribas in Dubai, which is regulated by the DFSA.
“The DFSA expects private bankers who provide services in or from the DIFC to act ethically and with integrity. 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,” said Ian Johnston, chief executive of the DFSA.
According to the regulator, Das also forged the client’s signature on a number of documents and sent account statements containing false and misleading information about his investments.
“The client did not suffer any financial loss as a consequence of Das’ fraudulent conduct and unauthorised investments,” a statement explained.
Das co-operated fully with the regulator’s investigation and acknowledged forging the client’s signature, executing unauthorised investments and providing the client with falsified documents. As such, he agreed to a settlement offer, in the form of an Enforceable Undertaking, to comply with the aforementioned DFSA sanctions.
This publication is currently in contact with BNP Paribas, but has not yet received a comment on the case.
