Following regulatory action by Dubai's financial authority, HDFC Bank's Dubai International Financial Centre is prohibited from onboarding new customers and providing them with financial services.
Concerns about the bank's onboarding procedures and its involvement in previous misselling of intricate financial instruments are the root of the case.Existing customers are unaffected, but the move increases the Indian bank's continued scrutiny in the United Arab Emirates.
HDFC Bank Limited's Dubai International Financial Centre (DIFC) branch is subject to stringent regulations from the Dubai Financial Services Authority (DFSA), which prohibit it from accepting new customers or advertising any financial services until further notice.
According to a statement released by the DFSA on Thursday, September 25, clients who had not finished onboarding by that date are no longer permitted to engage in the following activities:
1. Advising on financial products
2. Arranging deals in investments
3. Arranging or advising on credit
4. Arranging custody services
5. Marketing or promoting any financial services to prospective clients.
