Outsourcing Compliance Officer/Money Laundering Reporting Officer Function in the DIFC

The Dubai branch of an UK based reinsurer outsourced its CO/MLRO function in 2010 following the departure of its in-house compliance officer.

Callidus Consulting was engaged to carry out the function on one day/per week contract i.e. 52 days/year.

Johnson John the nominated individual continues to serve as its CO/MLRO for the last 10 years and the client continues to use the services of Callidus as the firm has grown significantly in headcount and premium income.

This has resulted in significant cost reduction and other benefits to the client in the DIFC.

Factors that enabled this outsourcing:

  • Dearth of suitable compliance talent with an understanding of the DIFC/DFSA framework
  • Risk based approach taken by the DFSA
  • Most DIFC entities do not have enough business to warrant a full-time employee
  • High attrition rate

Benefits of Outsourcing:

  • Availability of specialist consultants
  • Reduced head count
  • Cost saving
  • Reduced real estate costs
  • Scaling up/down based on business needs
  • Access to a bigger team of consultants & support staff
  • Market expertise as consultants are supporting the wider insurance market in the DIFC
  • Ability to support without interruption