* Bank agrees to produce documents, pay costs - statement
* Order comes after probe into wealth management arm
* Concerns over due diligence, AML risk
* Bank globally working through number of legal issues
(Adds detail, context)
By Mirna Sleiman
DUBAI, Feb 9 The regulator of Dubai's tax-free
financial centre said on Sunday that Deutsche Bank
had been found to be in "material non-compliance" with orders to
provide information as part of an investigation into alleged
The Dubai Financial Services Authority (DFSA) had in
November last year sued the lender, after almost one year of
investigations into the bank's wealth management division.
An out-of-court agreement between the bank and the Dubai
regulator was struck whereby Deutsche Bank will provide the
requested documents within 28 days, as well as cover the legal
costs of the DFSA, according to a statement from the regulator.
The material non-compliance was declared by the court which
covers the Dubai International Financial Centre (DIFC), home to
many large global banks and asset management who were attracted
by the region's oil wealth and rapid economic growth.
Deutsche Bank declined to comment.
Germany's biggest bank has been embroiled in a number of
scandals, with a jump in litigation costs partly responsible for
the surprise fourth-quarter loss it reported last month.
The investigations include cases related to the sub-prime
crisis and the manipulation of Libor interest rates. Co-Chief
Executive Anshu Jain has said that it would take much of 2014 to
work through the bulk of its legal issues.
No fine was handed down as part of its agreement with the
Court documents filed in the DIFC Courts on Oct. 31, 2013
showed Deutsche Bank was being investigated over potential
breaches of due diligence and assessing clients for
The DFSA had sent a first notice to the German bank in July
last year asking for information on wealth management client
names, account opening dates, details of relationship managers
and the level of due diligence performed by the bank, the court
(Editing by David French and Jane Merriman)