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The Dubai Financial Services Authority (DFSA) is the financial regulatory agency of the
special economic zone A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increas ...
, the
Dubai International Financial Centre The Dubai International Financial Centre (DIFC) is a special economic zone in Dubai covering , established in 2004 as a financial hub for companies operating throughout the Middle East, Africa and South Asia (MEASA) markets. DIFC is regulated b ...
(DIFC), In Dubai, United Arab Emirates. It is distinct from the UAE's federal Securities and Commodities Authority, whose jurisdiction covers the wider UAE outside the boundaries of the DIFC. It operates only within the special economic zone and is tasked with providing a regulatory environment of international standards. The DFSA's regulatory mandate includes asset management, banking and credit services, securities, collective investment funds, custody and trust services, commodities futures trading, Islamic finance, insurance, an international equities exchange, and an international commodities derivatives exchange. In addition to regulating financial and ancillary services, the DFSA is responsible for supervising and enforcing anti-money laundering (AML) and counter-terrorist financing (CTF) requirements applicable in the DIFC. The DFSA has also accepted a delegation of powers from the DIFC Registrar of Companies (RoC) to investigate the affairs of DIFC companies and partnerships where a material breach of DIFC Companies Law is suspected and to pursue enforcement remedies available to the Registrar.


Legal framework

Article 121 of the UAE Constitution enabled the Federation to create Financial Free Zones in the Emirates and, most importantly, to exclude the application of certain Federal laws in these Financial Free Zones. A number of laws created the DIFC and the necessary centre bodies, which include the DFSA. The laws set out the objectives, powers and functions of the central bodies. They also contain important exemptions and prohibitions in the DIFC.


History

The agency was established in 2004 as part of the establishment of the
Dubai International Financial Centre The Dubai International Financial Centre (DIFC) is a special economic zone in Dubai covering , established in 2004 as a financial hub for companies operating throughout the Middle East, Africa and South Asia (MEASA) markets. DIFC is regulated b ...
.


Mismarking

In 2016, a trader at a company authorized by the Dubai Financial Services Authority was banned for six years from performing any functions in connection with the provision of financial services in the Dubai International Financial Centre after he mismarked his trading book.


Treatment of whistleblowers

In 2019, it was reported that the DFSA was accused of retaliating against a whistleblower in a drug
money laundering Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdicti ...
case.


See also

* Securities Commission * Economy of Dubai *
List of financial regulatory authorities by country The following is an incomplete list of financial regulatory authorities by country. List A-B * Afghanistan - Da Afghanistan Bank (DAB) * Albania - Albanian Financial Supervisory Authority (FSA) * Algeria - Commission d'Organisation et de ...


References

Economy of Dubai Government agencies of Dubai Financial regulatory authorities of the United Arab Emirates {{gov-stub