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Deutsche Bank whistleblower hits back at regulator | Deutsche Bank whistleblower hits back at regulator |
(about 7 hours later) | |
A whistleblower who highlighted suspicious activity at a Dubai firm has hit back after the publication of a damaging finding against her. | A whistleblower who highlighted suspicious activity at a Dubai firm has hit back after the publication of a damaging finding against her. |
In October Anna Waterhouse said Dubai regulators had failed to investigate "suspicious circumstances" at Kaloti, the emirate's biggest gold refiner. | In October Anna Waterhouse said Dubai regulators had failed to investigate "suspicious circumstances" at Kaloti, the emirate's biggest gold refiner. |
Subsequently the regulator found she "acted without integrity" in another matter. | Subsequently the regulator found she "acted without integrity" in another matter. |
That finding was designed to discredit her, Ms Waterhouse has told the BBC. | That finding was designed to discredit her, Ms Waterhouse has told the BBC. |
The DFSA said it had followed "full and fair process". Both Kaloti and the DFSA have denied any wrongdoing. | The DFSA said it had followed "full and fair process". Both Kaloti and the DFSA have denied any wrongdoing. |
Ms Waterhouse, a former general counsel at Deutsche Bank, revealed to the BBC's Panorama on 28 October that the Dubai Financial Services Authority (DFSA) had failed to investigate a "catalogue of suspicious circumstances" at Kaloti. | Ms Waterhouse, a former general counsel at Deutsche Bank, revealed to the BBC's Panorama on 28 October that the Dubai Financial Services Authority (DFSA) had failed to investigate a "catalogue of suspicious circumstances" at Kaloti. |
Kaloti was used by a drug gang to launder money, Panorama found. | Kaloti was used by a drug gang to launder money, Panorama found. |
But less than eight weeks after the film was broadcast, the DFSA published a finding in a separate matter claiming Ms Waterhouse had "acted without integrity". | But less than eight weeks after the film was broadcast, the DFSA published a finding in a separate matter claiming Ms Waterhouse had "acted without integrity". |
'Clear message' | 'Clear message' |
Ms Waterhouse sought to appeal against that finding and prevent it from from being published. But permission to appeal was refused. | Ms Waterhouse sought to appeal against that finding and prevent it from from being published. But permission to appeal was refused. |
"With this decision the Dubai Financial Services Authority has sent a very loud, very clear message to the market about what happens to whistleblowers in their jurisdiction. They get punished," she said. | "With this decision the Dubai Financial Services Authority has sent a very loud, very clear message to the market about what happens to whistleblowers in their jurisdiction. They get punished," she said. |
"I reported serious money laundering suspicions about Kaloti and financial transactions facilitated by my former employer. | "I reported serious money laundering suspicions about Kaloti and financial transactions facilitated by my former employer. |
"Instead of investigating the suspected wrongdoing, the DFSA turned on me and have campaigned for years to discredit and undermine me." | "Instead of investigating the suspected wrongdoing, the DFSA turned on me and have campaigned for years to discredit and undermine me." |
'Wheelbarrows of cash' | 'Wheelbarrows of cash' |
As head of compliance and general counsel at Deutsche Bank in the Middle East, Ms Waterhouse was legally and ethically obliged to report suspicions of money laundering to the authorities. | As head of compliance and general counsel at Deutsche Bank in the Middle East, Ms Waterhouse was legally and ethically obliged to report suspicions of money laundering to the authorities. |
Colleagues told her in 2012 that Kaloti was withdrawing sums of cash that were so large the money had to be transported in wheelbarrows. | Colleagues told her in 2012 that Kaloti was withdrawing sums of cash that were so large the money had to be transported in wheelbarrows. |
Years later, a joint investigation by BBC Panorama and the French media agency Premieres Lignes discovered that Kaloti had also used cash to pay for 3.6 tonnes of gold from a gang that laundered money from the sale of illegal drugs all over Europe. | Years later, a joint investigation by BBC Panorama and the French media agency Premieres Lignes discovered that Kaloti had also used cash to pay for 3.6 tonnes of gold from a gang that laundered money from the sale of illegal drugs all over Europe. |
Ms Waterhouse filed suspicious activity reports with the Dubai Financial Services Authority and the central bank of the United Arab Emirates. | Ms Waterhouse filed suspicious activity reports with the Dubai Financial Services Authority and the central bank of the United Arab Emirates. |
That prompted the DFSA to launch investigations, but its focus quickly turned not on Kaloti, but onto her and her employer. | That prompted the DFSA to launch investigations, but its focus quickly turned not on Kaloti, but onto her and her employer. |
Breach of rules | Breach of rules |
The DFSA investigation eventually found bankers in Deutsche Bank's Dubai office had broken regulations in a separate case involving its private wealth division. | The DFSA investigation eventually found bankers in Deutsche Bank's Dubai office had broken regulations in a separate case involving its private wealth division. |
No clients lost money but the breach of the rules meant the bank faced serious sanctions. | No clients lost money but the breach of the rules meant the bank faced serious sanctions. |
However, Ms Waterhouse was the only manager at Deutsche Bank sanctioned - a finding which she has been fighting through the courts for six years. | However, Ms Waterhouse was the only manager at Deutsche Bank sanctioned - a finding which she has been fighting through the courts for six years. |
On 10 December she was unable for medical reasons to attend a hearing of the DFSA's Financial Markets Tribunal, sitting in London, where she was seeking permission to appeal the DFSA's decision. | On 10 December she was unable for medical reasons to attend a hearing of the DFSA's Financial Markets Tribunal, sitting in London, where she was seeking permission to appeal the DFSA's decision. |
She applied for a postponement to the Dubai courts, headed by retired British judge Sir Jeremy Cooke, attaching a medical certificate. This was refused. The DFSA said the Court determined that the medical certificate supplied by Ms Waterhouse was "wholly inadequate to support the question of adjournment." | She applied for a postponement to the Dubai courts, headed by retired British judge Sir Jeremy Cooke, attaching a medical certificate. This was refused. The DFSA said the Court determined that the medical certificate supplied by Ms Waterhouse was "wholly inadequate to support the question of adjournment." |
'Fair process' | 'Fair process' |
The DFSA told the BBC the release of the decision was "not in any way linked to the story on BBC Panorama". | The DFSA told the BBC the release of the decision was "not in any way linked to the story on BBC Panorama". |
It said the decision represented "the final outcome of a full and fair process" in which Ms Waterhouse had availed herself of avenues of review and appeal. | It said the decision represented "the final outcome of a full and fair process" in which Ms Waterhouse had availed herself of avenues of review and appeal. |
Following the publication of the DFSA's decision, the Dubai court has also awarded legal costs against her, likely to run into tens of thousands of pounds. | Following the publication of the DFSA's decision, the Dubai court has also awarded legal costs against her, likely to run into tens of thousands of pounds. |
However Ms Waterhouse said the hearing of her case was staffed and paid for by the DFSA. "The process is inherently unfair," she said. |
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