Dubai Financial Services Authority (DFSA) Updates

Fake Letter Impersonating the DFSA and its Chairman

05 Aug 2019

The Dubai Financial Services Authority “DFSA” alerts the financial services community and members of the public about a fraudulent scheme in which the DFSA and its Chairman were impersonated.

The scammers, using the DFSA logo, issued a fake letter purporting to be from the “Office of the Administrator” and the DFSA’s Chairman, while a bank and two UAE government entities were purported to have been copied in. The fake letter appears to have been sent to an individual in South Korea who was listed as the beneficiary of a USD 15 million transfer. The letter stated that in order for the UAE government to allow such a transfer, a second individual was required to travel to South Korea which would cost USD 3,500 in travel expenses.  The scammers further claimed this money needed to be transferred by the first individual to the DFSA. A copy of the fake letter can be found here.

In an attempt to authenticate the scam, the perpetrators of the scam fraudulently used the following without permission:
• The name, logo, address and purported stamp of the DFSA; and
• The name and purported stamp of DFSA’s Chairman.

The DFSA confirms that the letter is false. The DFSA informs you that it does not:
• have an office or function referred to as the “Office of the Administrator”;
• get involved in these types of transfers of large sums of money to individuals for no legitimate purpose or rationale;
• require other individuals to travel for the purposes of the safety or security of such transfers; or
• charge for travel expenses in advance of such transfers.

The DFSA strongly advises that you do not respond to the perpetrators in relation to the scam, and under no circumstances should you send or give any money to any party in connection with the scam.

The DFSA has a page on its website dedicated to alerts which it has issued about scams. All alerts issued by the DFSA may be accessed by going to: ALERTS

The DFSA has also issued warnings and guidance about the common types of scams, including Advance Fee scams, perpetrated on consumers. For more information on these scams please go to: HOW TO AVOID BEING SCAMMED

The DFSA encourages consumers to refer to the list of regulated Firms and Authorised Individuals licensed by the DFSA that is available on the DFSA’s PUBLIC REGISTER

If you have any concerns about the authenticity of any correspondence or documents that purport to be issued by the Dubai International Financial Centre (DIFC), DFSA or a DFSA regulated Firm, you should direct your concerns to the DIFC on Tel:+971 4 362 2222 and to the DFSA via the DFSA Complaints function on: COMPLAINTS

Link:

DFSA Notice

Skyo Microfinance Bank Limited Falsely Claims to be Incorporated by the DFSA in an Advance Fee Scam

09 Jul 2019

The Dubai Financial Services Authority (DFSA) alerts the financial services community and the public about a fraudulent scam promoted by “Skyo Microfinance Bank Limited” which offers easy loan approvals in return for a fee to be transferred to them.

Skyo Microfinance Bank Limited:
• Asks individuals to transfer a fee to finance an insurance policy against the loan in addition to the administrative fees.
• Displays a false Certificate of Incorporation purportedly issued by the DFSA.

A copy of the false Certificate of Incorporation can be viewed here.

The DFSA advises the public that it does not issue Certificates of Incorporation of any kind to any company, firm or individual. The Certificate which is used by Skyo Microfinance Bank Limited is false.

The DFSA strongly advises prospective individuals not to respond to Skyo Microfinance Bank Limited or any other person or company representing the firm.

The DFSA also warns against sending money to Skyo Microfinance Bank Limited.  

The DFSA has a page on its website dedicated to informing the public about scams, including scams which misuse the name of the DFSA and/or the DIFC.  All Alerts issued by the DFSA may be accessed by going to ALERTS 

The DFSA has also issued warnings and guidance about the common types of scams perpetrated on consumers. For more information on these scams please go to HOW TO AVOID BEING SCAMMED
 
If you have any concerns about the authenticity of any DIFC Authority or DFSA correspondence or documents, you should direct your concerns to the DIFC Authority on Tel: +971 4 362 2222 and to the DFSA via the DFSA Complaints function on COMPLAINTS

Link:

DFSA Notice

Redimax Capital Falsely Claims to be Regulated by the DFSA

03 Jul 2019

The Dubai Financial Services Authority (DFSA) alerts the financial services community and members of the public to false claims made by Redimax Capital (also known as REDIMAX CAPITAL or RediMax).

Redimax Capital falsely claims on its website that it is a DFSA regulated broker and gives a DFSA registration number suggesting it is authorised to provide “registered financial services in Dubai”.

In fact, Redimax Capital is not, and has never been, authorised or regulated by the DFSA.  Redimax Capital does not hold a commercial licence from the DIFC Registrar of Companies to operate a business in or from the DIFC, and it appears that it has no office located in the DIFC.  Further, the registration number is for a legitimate DFSA Authorised Firm that has no connection to Redimax Capital.

The DFSA advises that:

• The Scammers have used the name of the DFSA without authority; and
• Redimax Capital is not authorised or regulated by the DFSA.

The DFSA has a page on its website dedicated to Alerts in relation to scams, including scams which misuse the name of the DFSA and/or the DIFC. All Alerts issued by the DFSA may be accessed by going to ALERTS

The DFSA has also issued warnings and guidance about the common types of scams, including Advance Fee scams, perpetrated on consumers. For more information on these scams please go to: HOW TO AVOID BEING SCAMMED

If you have any concerns about the authenticity of any correspondence or documents that purport to be issued by the Dubai International Financial Centre (DIFC), DFSA or a DFSA regulated Firm, you should direct your concerns to the DIFC on Tel:+971 4 362 2222 and to the DFSA via the DFSA Complaints function on: COMPLAINTS

Link:

DFSA Notice

Notice of Amendments to Legislation

27 Jun 2019

Following the ending of the consultation period on a number of proposed legislative changes that were set out in Consultation Paper No. 124 the DFSA Board, after due consideration of consultees’ comments, made amendments to the DFSA Rulebook as described below. Please bear in mind that changes may have been made to the legislation originally proposed in the relevant consultation paper.

The DFSA Board also amended the AML module of the Rulebook to make various minor and consequential amendments to update or correct references that are no longer correct due to the entry into force of new Federal AML legislation.

TAKE NOTICE THAT:

The DFSA Board made the following Rulemaking Instruments to come into force on 1 July 2019

• GENERAL MODULE (GEN) RULE-MAKING INSTRUMENT (No. 253) 2019, which repeals and replaces the General Module (GEN) of the DFSA Rulebook with an updated version (see appendix 1 for the detailed amendments);
• CONDUCT OF BUSINESS MODULE (COB) RULE-MAKING INSTRUMENT (No. 254) 2019, which repeals and replaces the Conduct of Business (COB) module of the DFSA Rulebook with an updated version (see appendix 2 for the detailed amendments);
• COLLECTIVE INVESTMENT RULES (CIR) INSTRUMENT (No. 255) 2019, which repeals and replaces the Collective Investment Rules (CIR) of the DFSA Rulebook with an updated version (see appendix 3 for the detailed amendments);
• MARKETS RULES (MKT) RULE-MAKING INSTRUMENT (No. 256) 2019, which repeals and replaces the Markets Rules (MKT) of the DFSA Rulebook with an updated version (see appendix 4 for the detailed amendments);
• GLOSSARY MODULE (GLO) RULE-MAKING INSTRUMENT (No. 257) 2019, which repeals and replaces the Glossary Module (GLO) of the DFSA Rulebook with an updated version (see appendix 5 for the detailed amendments); and
• ANTI-MONEY LAUNDERING, COUNTER-TERRORIST FINANCING AND SANCTIONS MODULE (AML) INSTRUMENT (No. 258) 2019, which repeals and replaces the Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Module (AML) of the DFSA Rulebook with an updated version (see appendix 6 for the detailed amendments).

The rule-making instruments mentioned above and the appendices to this notice can be viewed under the “Amendments to Legislation” section of the DFSA website and the relevant modules will be replaced on the DFSA website on the date of their coming into force as described above. Earlier versions of the relevant modules are to be found in the archive.

Links:

DFSA Notice

AML/CTF and Sanctions InstrumentChanges (appendix 6)

Cyprus SEC Impersonated in a Fraudulent Scam

20 Jun 2019

The Dubai Financial Services Authority (DFSA) warns the financial services community and members of the public of a scam in which the Cyprus Securities and Exchange Commission (CySEC) and its officers have been impersonated.

The scammers solicit investors for fees in exchange for settlement of fraudulent compensation claims related to the business activities of a number of firms under CySEC’s supervision. A sophisticated online campaign targeting investors is used as part of the scam which typically involves:

• individuals claiming to be CySEC officers, appointed representatives of CySEC (e.g. legal advisors), other Cypriot supervisory authorities (e.g. the Central Bank of Cyprus) and/or bank representatives appointed by CySEC contacting investors that are clients of regulated entities under CySEC’s supervision. Contact is often via emails which appear to be genuine – they carry the name, address, official stamp and logo of CySEC and fraudulently copy CySEC officials’ signature;

• false promises being made to assist investors with compensation for potential damages in connection with dealings they have had with sanctioned firms (typically online trading firms offering speculative investment products);

• soliciting personal information from investors including telephone records; and

• in some cases, calling investors via telephone in relation to email correspondence concerning the fraudulent scam.

The DFSA informs you that, as CySEC has stated in its own warnings and alerts, the CySEC never sends unsolicited correspondence to investors or members of the public, and:

• does not request any personal data, financial or otherwise;

• has no authority or jurisdiction to collect fees for any purpose from individual investors, nor does it have authority to appoint anyone to do so on its behalf; and

• does not authorise, verify, monitor, or is in any way involved in class actions, and compensation.

Example of impersonation: what you should watch out for

A recent case that came to the attention of the CySEC involved correspondence in which an individual using the name “Christos Sofroniou” attempted to convince recipients to pay legal fees to participate in fake aid programs for recovery of losses they might have suffered. As part of the correspondence, the CySEC logo was fraudulently used without authority. The individual used the electronic address contact@sofroniou-legal.org and the telephone numbers +35725654263, +35799711917.

The DFSA urges the public to remain vigilant regarding any unsolicited communication from anyone falsely claiming to represent the CySEC, and under no circumstances should you send any money to such individuals in connection with any scams. Further, investors are strongly advised to contact CySEC to confirm the authenticity of any unsolicited communication by email at info@cysec.gov.cy.

The DFSA has a page on its website dedicated to alerts which it has issued about scams. All alerts issued by the DFSA may be accessed by going to: ALERTS

The DFSA has also issued warnings and guidance about the common types of scams perpetrated on consumers. For more information on these scams, please go to: HOW TO AVOID BEING SCAMMED

The DFSA encourages consumers to refer to the list of regulated Firms and Authorised Individuals licensed by the DFSA that is available on the DFSA’s PUBLIC REGISTER

If you have any concerns about the authenticity of any correspondence or documents that purport to be issued by the Dubai International Financial Centre (DIFC), DFSA or a DFSA regulated Firm, you should direct your concerns to the DIFC on Tel:+971 4 362 2222 and to the DFSA via the DFSA Complaints function on: COMPLAINTS

Link:

DFSA Notice

ALERTS

DFSA and an International Bank Impersonated in a “Covering Certificate” Scam

29 May 2019

The Dubai Financial Services Authority (DFSA) warns the financial services community and members of the public of a scam in which the DFSA and an international bank were impersonated.

The scammers, using the DFSA logo, issued a fake “Stop Order” addressed to an international bank. The Stop Order stated that an incoming transfer of USD7.6 million was put on hold, because a “Covering Certificate” is required prior to the receipt of an international transfer. The Stop Order also stated that the Covering Certificate is mandated by the DFSA and can be obtained for a fee of 0.2% of the transfer amount. A copy of the fake Stop Order can be found here.

In addition, the scammers, using the logo of the same international bank referred to in the Stop Order, issued a fake “Payment Confirmation” regarding the transfer of USD7.6 million. A copy of the fake Payment Confirmation can be found here.

Both fake letters, being the Stop Order and Payment Confirmation, were sent to a member of the public who is listed as the beneficiary of the fictitious USD7.6 million transfer.

In an attempt to authenticate the scam, the perpetrators of the scam fraudulently used the following without permission:
• The name and logo of the DFSA;
• The name and purported signature of a royal family member on the Stop Order; and
• The name and logo of an international bank.

The DFSA is informing you that the Stop Order and Payment Confirmation are false documents which were not issued by the DFSA or the international bank respectively.

The DFSA informs you that it does not:
• Require a Covering Certificate for international transfers; or
• Charge a fee for international transfers.
The DFSA strongly advises you that you do not communicate with the perpetrators in relation to the scam, and under no circumstances should you send any money to them in connection with the scam.

The DFSA has a page on its website dedicated to alerts which it has issued about scams. All alerts issued by the DFSA may be accessed by going to: ALERTS

The DFSA has also issued warnings and guidance about the common types of scams perpetrated on consumers. For more information on these scams, please go to: HOW TO AVOID BEING SCAMMED

The DFSA encourages consumers to refer to the list of regulated Firms and Authorised Individuals licensed by the DFSA that is available on the DFSA’s PUBLIC REGISTER

If you have any concerns about the authenticity of any correspondence or documents that purport to be issued by the Dubai International Financial Centre (DIFC), DFSA or a DFSA regulated Firm, you should direct your concerns to the DIFC on Tel:+971 4 362 2222 and to the DFSA via the DFSA Complaints function on: COMPLAINTS

Link:

DFSA Notice

False DIFC letter used to promote “Prize Money” scam 

09 May 2019

The Dubai Financial Services Authority (DFSA) warns the financial services community and the public of a scam in which the scammers wrongly claim to be from the Dubai International Financial Centre (DIFC).

According to the scammers’ fraudulent letter, which uses the DIFC logo without authority, the “Dubai International Finance Centre” is awarding people “winnings” of USD 4,500,000 in exchange for an official endorsement/logistic/administrative charge of USD 12,700 along with a photocopy of identification.

This is a classic example of a lottery scam, a typical variant of the advance fee fraud whereby scammers promise the victim a large sum of money in return for a relatively small upfront fee.  Unfortunately, of course, once the scammers receive the small upfront fee, they will never pay the large sum, and generally disappear. 

The DFSA wishes to make clear that the scammers have attempted to add the appearance of legitimacy to this scam by fraudulently impersonating the DIFC.  They did this by improperly using: 

  • the DIFC logo; 

  • a similar name to the DIFC; and 

  • an individual’s name which is similar to that of the President of the DIFC.

The DFSA strongly recommends that you do not respond to any letter regarding the scam, and under no circumstances should you send or give any money to any party in connection with the scam.

The DFSA has a page on its website dedicated to alerts which it has issued about scams. All alerts issued by the DFSA may be accessed by going to: ALERTS

The DFSA has also issued warnings and guidance about the common types of scams, including Advance Fee scams, perpetrated on consumers. For more information on these scams please go to: HOW TO AVOID BEING SCAMMED

If you have any concerns about the authenticity of any correspondence or documents that purport to be issued by the Dubai International Financial Centre (DIFC), DFSA or a DFSA regulated Firm, you should direct your concerns to the DIFC on Tel:+971 4 362 2222 and to the DFSA via the DFSA Complaints function on: COMPLAINTS

Link:

DFSA Notice