The Dubai Financial Services Authority (DFSA) has released the findings of its Thematic Review on Money Services Providers (MSPs) operating within the Dubai International Financial Centre (DIFC). The review assessed the effectiveness of MSPs' management of Operational Risk and their compliance with the Prudential – Investment, Insurance Intermediation, and Banking Business Module of the DFSA Rulebook.

The DFSA undertook this initiative to ensure that MSPs adhere to sound risk management principles and maintain robust governance frameworks. The findings from this review are intended to assist MSPs in enhancing their operational risk management practices and ensure ongoing compliance with the DFSA Rulebook.

Key areas of focus in the review included:

• Operational Risk management framework: The DFSA assessed the implementation of MSPs' Operational Risk management policies and the extent to which they align with regulatory requirements.
• Strong Customer Authentication: MSPs were required to demonstrate the adequacy of their security measures, particularly in protecting personal security credentials and ensuring safe digital transactions.
• Technical standards for Risk management: The review examined how MSPs document and implement technical standards related to their risk management systems.
• Fraud detection and prevention systems: The DFSA scrutinised the robustness of transaction monitoring systems aimed at preventing fraudulent activities and unauthorised transactions.

Firms are reminded of their obligation to notify the DFSA of any material changes or issues affecting their compliance with the rules governing operational risk and security measures.

For further information, please refer to the full Thematic Review: https://www.dfsa.ae/download_file/3733/0​​​