DBS Hong Kong Fined HK$10 Million for AML Violations by Hong Kong Regulator

The Hong Kong unit of DBS Group Holdings, Singapore’s largest lender, has been fined HK$10 million ($1.28 million) by Hong Kong’s banking regulator for breaching anti-money laundering (AML) regulations.

This disciplinary action follows an investigation by the Hong Kong Monetary Authority (HKMA) into control failures at DBS Bank (Hong Kong) between April 2012 and April 2019, according to a statement released by the regulator on Friday.

The scrutiny faced by DBS in Hong Kong mirrors that of rival financial hub Singapore, which fined four financial institutions, including DBS, for AML breaches a year ago.

The HKMA investigation found that DBS failed to continuously monitor business relationships and conduct enhanced due diligence in high-risk situations. Additionally, DBS was found to have failed to maintain records for some of its customers.

“The HKMA requires banks to put in place effective customer due diligence measures to combat money laundering and terrorist financing,” said Raymond Chan, executive director of the HKMA, in the statement.

In response, a DBS Hong Kong spokesman told Reuters, “DBS Hong Kong takes our AML obligations seriously and accepts HKMA’s decision.” The spokesman explained that the issues identified were sporadic and historical, occurring between April 2012 and April 2019, and noted that the bank has since implemented new group policies to detect and manage evolving money laundering practices.

By fLEXI tEAM