about supervision

The DFSA operates a risk-based supervision framework.

The DFSA monitors compliance with the Laws and Rules including provisions relating to anti-money laundering. It supervises Authorised Firms, Authorised Market Institutions, Authorised Individuals and Ancillary Service Providers.

The DFSA also undertakes market monitoring and research in order to identify, assess and address any developments either within or outside the DIFC which may pose a risk to the centre or a particular section of the DIFC community.

 

Being Supervised

The DFSA operates a risk-based supervision framework, with the primary focus of engaging with firms through ongoing site visits and transaction testing. In order to build strong relationships with firms, we base our supervision on the following principles:

 

Relationship building with firms

The DFSA’s primary focus is building a constructive relationship with firms based primarily on site visits and transaction testing. The DFSA seeks to establish and maintain an ongoing dialogue with a firm’s senior management in order to develop and sustain a thorough understanding of the firm’s business, systems and controls.

The DFSA also uses communication tools including SEO Letters.

 

Establishing and operating a risk-assessment framework

The DFSA aims to identify and target areas that pose the highest risks to its objectives. The DFSA adopts a continuous risk management cycle comprising the identification, assessment, prioritisation and mitigation of risks. General risk factors are also included in the risk management process, including external factors that apply either to particular sectors of the regulated community or to the entire community.

 

Supervisory tools

The DFSA has a range of supervisory tools available to diagnose and monitor risks, and to prevent them from occurring. It chooses appropriate tools for each situation, with a view to cost-effective regulation for the DFSA and the firm, and to preserve and enhance the marketplace. Increasingly, the DFSA uses thematic reviews as a key tool to assess risk in the marketplace.

 

International co-operation

The DFSA works closely with international regulators, in particular with home regulators of entities and individuals. The focus of this co-operation is to ensure that mutually satisfactory standards are maintained and to promote the exchange of information.

 

Anti-Money Laundering and Know-Your-Customer

The DFSA places great emphasis on adherence to Anti-Money Laundering and Know-Your-Customer regulations.