DFSA authorisation
Authorised Individuals and licensed functions
In short
Certain functions can only be performed by individuals the DFSA has approved by name. The core roles are the Senior Executive Officer, Compliance Officer, Money Laundering Reporting Officer and Finance Officer. The SEO, Compliance Officer and MLRO must be resident in the UAE.
The roles and who can hold them
The Senior Executive Officer runs the firm and must have genuine authority, not a title. The Compliance Officer owns the compliance function and reports to the governing body. The MLRO is the point of contact for financial crime reporting. The Finance Officer is responsible for financial reporting and the capital position.
In a small firm the DFSA will approve one person for Compliance Officer and MLRO. It looks closely at capacity, and combining the SEO role with compliance functions is far harder to justify because the independence argument collapses.
- Senior Executive Officer: UAE resident, genuine authority over the business
- Licensed Director: required for certain firm types
- Compliance Officer: UAE resident, independent, direct access to the board
- Money Laundering Reporting Officer: UAE resident, may be combined with Compliance Officer in smaller firms
- Finance Officer: responsible for the capital position and financial reporting
Fitness and propriety
The DFSA assesses integrity, competence and financial soundness. That means regulatory references from previous employers, disclosure of any regulatory action, criminal record checks and evidence of relevant experience. Gaps in an employment history get asked about.
Anything disclosable should be disclosed by the applicant rather than found by the regulator. A historic matter explained upfront is usually survivable. The same matter discovered during review is a different conversation.
Start recruiting early
The single most common cause of a delayed application is a Compliance Officer identified after in-principle approval. The candidate needs the right experience, has to satisfy the DFSA, and often has to relocate and obtain a visa.
Begin the search at the same time as the Regulatory Business Plan. Firms that do this authorise in three months. Firms that leave it take nine.
Questions
Does the SEO have to live in the UAE?
Yes. The Senior Executive Officer must be resident in the UAE and must have real authority over the firm's business. A non-resident holding the title is not acceptable.
Can one person be Compliance Officer and MLRO?
In smaller firms, yes. The DFSA assesses whether the individual has capacity for both. As the firm grows or begins holding client assets, expect pressure to separate them.
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