Hong Kong fines DBS US$1.28 million over breaching anti-money laundering regulations

HONG KONG/SINGAPORE: The Hong Kong unit of DBS Staff Holdings, Singapore’s greatest lender, was once fined HK$10 million (US$1.28 million) by way of Hong Kong’s banking regulator for violating anti-money laundering (AML) and counter-terrorist financing laws.

The disciplinary motion comes after an investigation carried out by way of the Hong Kong Financial Authority (HKMA), which regarded into regulate screw ups of DBS Financial institution (Hong Kong) between April 2012 and April 2019, the regulator mentioned in a observation on Friday (Jul 5).

The scrutiny by way of Hong Kong resembles that of rival wealth centre Singapore, which a yr in the past fined 4 monetary establishments over AML breaches, together with DBS.

The financial institution did not ceaselessly track industry relationships and behavior enhanced due diligence in top possibility scenarios. DBS was once additionally discovered to have did not stay data on a few of its consumers, in keeping with the HKMA.

“The HKMA calls for banks to place in position efficient buyer due diligence measures to fight cash laundering and terrorist financing,” Raymond Chan, government director of the HKMA mentioned within the observation.

“DBS Hong Kong takes our AML duties severely and accepts HKMA’s determination,” a DBS Hong Kong spokesman mentioned in a observation to Reuters.

The problems to hand have been sporadic and ancient in nature having befell between April 2012 and April 2019, the spokesman mentioned, including that the financial institution has applied new team insurance policies through the years to proceed to discover and organize new cash laundering practices.

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