The Dubai Financial Services Authority (DFSA) has issued a directive prohibiting HDFC Bank’s branch in the Dubai International Financial Centre (DIFC) from onboarding new clients or engaging in financial services with clients whose onboarding was not completed by September 25, 2025. The restrictions, which came into effect September 26, cover a wide array of services including advising on financial products, arranging investment deals, arranging or advising credit, custody-related services, and financial promotions.
Existing customers will continue to be serviced as usual, and queues are being allowed for clients who had already been offered financial services prior to the directive. The order will stay in place until the DFSA explicitly amends or revokes it.
The DFSA took this action following concerns about the branch’s client onboarding procedures. Specifically, the regulator cited issues related to providing financial services to clients not properly onboarded and deficiencies in the onboarding process itself. There are also concerns around whether certain high-risk financial instruments were sold without adequate safeguards.
HDFC Bank has responded by stating that the business conducted through its DIFC branch is not material to the bank’s overall operations or financial position, and therefore this restriction is unlikely to have a significant effect on its larger business. As of September 23, the branch reported having 1,489 onboarded customers. The bank says it is cooperating with DFSA and has begun implementing steps to address the raised concerns.