HDFC Bank recently announced that its Dubai International Financial Centre (DIFC) branch has been directed by a United Arab Emirates regulator to halt onboarding or soliciting new clients. This directive, issued by the Dubai Financial Services Authority (DFSA), has been in effect since September 26 and will continue until the regulator decides to amend or revoke it.
The bank responded promptly to the notification, emphasizing that it has already begun taking the necessary steps to comply with the DFSA’s directives. Their commitment to resolving the regulator’s concerns is clear, with HDFC expressing a focus on promptly addressing and remediating the issues highlighted.
As of September 23, the DIFC branch of HDFC Bank managed relationships with 1,489 customers, including joint account holders. Despite the current restrictions on acquiring new clients, the bank reassured stakeholders that this order does not materially affect the branch’s ongoing operations or the overall financial health of HDFC Bank.
Importantly, the prohibition set by the DFSA does not extend to existing customers. The bank can continue to service all current clients of the DIFC branch without interruption, ensuring continuity and support for these accounts amidst the regulatory measures.
This focused approach by HDFC Bank reflects a careful balance between regulatory compliance and customer service, maintaining steady operations while working through the DFSA’s concerns in Dubai’s financial hub.
