The Dubai Financial Services Authority (DFSA) alerts the financial services community and members of the public to a scam in which the DFSA was impersonated in a fake letter.

The letter, entitled “Annual Anti Money Laundering Tax”, is sent by scammers to members of the public, falsely claiming to be from the DFSA. The letter:

·         refers to extracts of DFSA administered legislation;

·         asks members of the public (among other things) to make a clearing payment to the DFSA based on 15% of their portfolio value with a firm called “CFI XP”

·         alleges that “CFI XP” is authorised by the DFSA; and

·         states that failure to make payment will lead to the entire portfolio with “CFI XP” being confiscated without prior notice.  

A copy of the letter can be found here.

On receiving payment, the scammers send a confirmation letter titled “Annual Anti Money Laundering Tax…CONFIRMED”.  A copy of the confirmation letter can be found here.

In an attempt to make the scam seem authentic, the scammers have fraudulently used the name and a fake logo of the DFSA without its permission. The DFSA informs you that:

·         both letters are fake and were not sent by the DFSA;

·         there is no DFSA Authorised Firm named CFI XP;

·         the DFSA does not charge an Anti-Money Laundering Tax or any other tax; and

·         the DFSA does not confiscate the portfolios of members of the public.

The DFSA strongly advises you not to respond to any communications regarding this scam, and under no circumstances should you send or give any money to any party connected to the scam.

The DFSA suggests that firms and individuals can avoid being scammed by:

·         checking the relevant regulatory status of a person before doing business with them;

·         only doing business with firms or individuals you trust. Dealing with people you have never met may carry a higher risk;

·         be particularly cautious when receiving unsolicited communications; and

·         obtaining independent professional advice before entering into any investment or transaction.