DFSA bars HDFC Bank DIFC branch from onboarding new clients

The Dubai Financial Services Authority has barred HDFC Bank’s Dubai International Financial Centre branch from onboarding new clients, the regulator said, after raising concerns about the branch’s customer onboarding and conduct. The DFSA issued a decision notice on September 25 that took effect on September 26, prohibiting the DIFC branch from soliciting, onboarding or doing business with any new clients who had not completed onboarding by September 25. The restriction covers activities including advising on financial products, arranging investments, arranging or advising on credit and custody services.

The DFSA confirmed the directive in a statement, saying the restriction will remain in force until it is expressly amended or revoked. The regulator has not provided a timeline for lifting the measures. HDFC Bank said in a regulatory filing that the DIFC branch had 1,489 customers, including joint accounts, as of September 23, and that the Dubai operations are not material to the bank’s overall financial position. The bank added, “The bank has already initiated necessary steps to comply with the directives in the abovereferred notice and is committed to working with the DFSA to...