Bars Arab Emirates organizer

The Dubai HDFC Branch, which works under the Dubai International Financial Center (DIFC), was banned by the United Arab Emirates organizer from new clients on board during a continuous investigation of the customer’s practices on board. The Dubai Financial Services Authority (DFSA) has issued a directive that restricts the branch to provide financial services to new customers, including advice on financial products, arranging investments and credit, providing custody, or providing financial promotions. This step tracks scrutiny whether the bank’s operations meet DIFC’s strict requirements to manufacture “professional customers”. The development was first reported by economic times.

According to HDFC, the branch operations are not material for the bank’s total bank company or the bank’s financial situation, as the branch serves 1489 customers as of September 23, 2025. The bank has stated its commitment to addressing organizational concerns and completely compliance with DFSA directives.

The organizational examination of HDFC practices began after concerns about the equivalent of its customer on the plane in DIFC, a specialty that maintains a tougher framework for professional investors compared to other regions. DFSA order prohibits the branch of providing financial services to new customers until further notice. These measures reflect wider efforts by the UAE authorities to enhance compliance with the financial standards in force in DICC.

According to the notice, the branch in Dubai may not provide advisory services to new customers on financial products, arrange deals in investments or credit, providing custody, or providing financial offers. However, these restrictions do not apply to existing customers or potential customers who have already provided services but not yet on board. DFSA stated that the request will remain effective until it is formally modified or canceled.

The restrictions were imposed after the organizer expressed their concerns about the branch’s practices regarding financial services provided to customers who were not fully on board, as well as gaps in the movement itself. DFSA is part of the ongoing efforts to address organizational lapses and protect compliance with all market participants working within DICC.

These recent supervisory measures stem from the repercussions of the controversy that involves the poor sales of the additional rpion of Credit Suisse (AT1) through the UAE operations of HDFC. The bonds were written in 2023 after the collapse of the Credit Suisse, which left many non -resident Indian investors facing significant losses and margin calls.

The case focuses on whether the UAE operations of the HDFC, including consultations from DIFC officials, management of relations from the Dubai office, and reservation of accounts through the Bahrain Branch, are involved in providing these risky products to customers without adequate detection or appropriate navigation. The organizational focus on DIFC emphasizes the importance that has been placed on procedural accuracy and the protection of investors in the judicial jurisdiction.

HDFC Bank has reiterated that the DIFC branch business is not important in terms of wider operations. From late September, the branch maintained 1,489 customers, including joint account holders. The bank quickly moved to implement compliance measures and engaging in a proactive manner with the regulator as required in the request.

“The bank has already started necessary steps to comply with the directives of the above -reference notification and is committed to working with DFSA in its continuous achievement and dealing with DFSA concerns immediately at the earliest time,” the company said in a statement. DFSA did not indicate when or if the restrictions are raised, while maintaining that the demand will remain until the written modification or cancellation.