The Dubai Financial Services Authority (DFSA) has restricted HDFC Bank DIFC Branch from onboarding new clients, citing concerns over gaps in its onboarding processes.
In a Decision Notice dated September 25, 2025, the DFSA barred the branch from soliciting or conducting business with any new client not fully onboarded by that date. The restrictions extend to services such as financial advice, investment arrangements, credit-related advisory, and custody activities. The directive, effective September 26, will remain in place until amended or revoked by the regulator.
The branch, however, is permitted to continue servicing existing clients and may provide services to customers who had already engaged with the bank but had not yet completed the formal onboarding process. As of September 23, the DIFC branch reported 1,489 onboarded customers, including joint holders.
The DFSA’s action stems from concerns that certain financial services were being offered to clients who had not gone through proper onboarding. HDFC Bank said in a statement that the DIFC branch’s operations are “not material” to its overall financials and that no significant impact is expected.
The bank added that it has already begun implementing corrective measures and is cooperating closely with the DFSA to resolve the regulator’s concerns.
This development comes as global regulators maintain heightened scrutiny of cross-border banking compliance, particularly around anti-money laundering (AML) and client due diligence standards.
