DBS HK fined HK$10m for anti-money laundering breaches

The Hong Kong Monetary Authority (HKMA) has fined DBS Hong Kong HK$10 million for breaching its anti-money laundering and counter-terrorist financing ordinance (AMLO) (打擊洗錢及恐怖分子資金籌集條例).

The disciplinary action follows an investigation by the HKMA on the bank's systems and controls for compliance with the AMLO.  

The HKMA said it identified in the investigation that DBS HK failed to continuously monitor business relationships and conduct enhanced due diligence in high-risk situations during various periods between April 2012 and April 2019, as well as its failure to keep records in respect of some of the customers.  

DBS HK also failed to maintain effective procedures for carrying out its duties under the AMLO about the aforementioned control deficiencies during this period, the HKMA added. 

Raymond Chan, executive director (enforcement and anti-money laundering), HKMA said, “The HKMA requires banks to put in place effective customer due diligence measures to combat money laundering and terrorist financing. These measures should be subject to regular review to ensure that they remain effective.”

In a statement seen by MARKETING-INTERACTIVE, DBS Hong Kong said it accepts the HKMA’s decision and takes its anti-money laundering (AML) obligations seriously. “The issues at hand were sporadic and historical in nature, having occurred between April 2012 and April 2019."

The bank added that it has been working closely with the HKMA to enhance anti-money laundering controls and has implemented new group policies that "materially improved its capabilities to detect and mitigate money laundering risks".

Don’t miss: DBS HK empowers SMEs with new sustainability campaign

According to the HKMA, it has taken into account all relevant circumstances and factors, including the seriousness of the investigation findings; the need to send a clear deterrent message to the industry about the importance of effective controls and procedures to address money laundering and terrorist financing risks; remedial actions have been taken to address the deficiencies identified and efforts have been made to improve the bank’s anti-money laundering and counter-financing of terrorism controls;

DBSHK has no previous disciplinary record in relation to the AMLO and cooperated with the HKMA during the investigation and enforcement proceedings, the HKMA added. 

Related articles:

DBS' group head of marketing Saurabh Singhal moves to GIFT City
DBS HK empowers SMEs with new sustainability campaign
DBS and Agoda partner up to elevate customers' travel experiences