The Hong Kong unit of DBS has been fined over breaches of anti-money laundering and counter-terrorist financing rules.
The Hong Kong Monetary Authority (HKMA) has imposed a pecuniary penalty of HK$10,000,000 ($1.3 million) against DBS Bank (Hong Kong) for contraventions of the Anti-Money Laundering (AML) and Counter-Terrorist Financing Ordinance, according to a statement.
Between April 2012 and April 2019, DBS failed to continuously monitor business relationships, conduct enhanced due diligence in high risk situations and keep records of some customers. The bank also failed to «maintain effective procedures» for carrying out its duties under the AML ordinance.
Circumstances and Factors Considered
According to the HKMA, the disciplinary action had taken into account all relevant circumstances and factors. They include the seriousness of the investigation findings, remedial actions taken and the fact that the bank had no previous disciplinary record related to the AML ordinance. The regulator also highlighted the need to «send a clear deterrent message to the industry» on AML controls and procedures.
«The HKMA requires banks to put in place effective customer due diligence measures to combat money laundering and terrorist financing,» commented Raymond Chan, HKMA’s executive director of enforcement and AML. «These measures should be subject to regular review to ensure that they remain effective.»
