Hong Kong's monetary authority fined DBS Bank for anti-money laundering compliance failures.
The bank's lapses included inadequate monitoring of high-risk customers.
The Hong
Kong Monetary Authority (HKMA) has imposed a HK$10 million ($1.28 million) fine
on DBS Bank (Hong Kong) Limited (DBS HK) for breaching anti-money laundering
and counter-terrorist financing regulations. The penalty follows an
investigation that uncovered significant control deficiencies at the bank
between April 2012 and April 2019.
Hong Kong Regulator Fines
DBS Bank HK$10 Million for AML Lapses
The HKMA's
investigation revealed that DBSHK failed to adequately monitor business
relationships and conduct enhanced due diligence in high-risk situations. The
bank also neglected to maintain proper records for some customers and lacked
effective procedures to fulfill its duties under the Anti-Money Laundering and
Counter-Terrorist Financing Ordinance (AMLO).
"The
HKMA requires banks to implement effective customer due diligence measures to
combat money laundering and terrorist financing," Raymond Chan, Executive
Director of Enforcement and Anti-Money Laundering at the HKMA, emphasized the
importance of robust compliance practices. "These measures should undergo
regular review to ensure their continued effectiveness."
Among the
specific lapses identified, DBS HK failed to obtain identity documents for 609
authorizers of its corporate internet banking service, IDEAL, affecting 477
corporate customers. The bank also neglected to establish the source of wealth
for 15 high-risk customers, potentially exposing itself to money laundering and
terrorist financing risks.
“The region’s crackdown on banks’ money laundering
activities marks a significant shift, with regulators intensifying their
efforts,” commented Rory
Doyle, Head of Financial Crime Policy at Fenergo.
In
determining the penalty, the HKMA considered several factors, including the
seriousness of the findings and the need to send a strong deterrent message to
the banking industry. The regulator also acknowledged that DBSHK has taken
remedial actions to address the identified deficiencies and has no previous
disciplinary record related to the AMLO.
$2.2 Billion Case
A
spokesperson for DBSHK responded to Bloomberg, stating that the
institution takes its AML (Anti-Money Laundering) and CTF (Counter-Terrorism
Financing) procedures "seriously" and accepts the regulator's
decision. However, they noted that the issues for which the fine was imposed
were "sporadic and historical in nature."
Last year,
DBS was fined for similar violations, along with Citibank, Oversea-Chinese
Banking Corp. (OCBC), and Swiss Life, for allegedly breaching Anti-Money
Laundering/Counter-Terrorism Financing (AML/CFT) requirements. The total fines
amounted to $2.83 million.
“Banks will
need to enhance their due diligence efforts significantly. Many will need to
perform comprehensive reviews of their compliance systems and quickly implement
necessary upgrades,” added Doyle.
While the
fine is relatively modest, it does not change the fact that one of Singapore's
largest banks has been involved in several major controversies in the past,
including a billion-dollar money laundering scheme, where the police secured
$2.2 billion.
The Hong
Kong Monetary Authority (HKMA) has imposed a HK$10 million ($1.28 million) fine
on DBS Bank (Hong Kong) Limited (DBS HK) for breaching anti-money laundering
and counter-terrorist financing regulations. The penalty follows an
investigation that uncovered significant control deficiencies at the bank
between April 2012 and April 2019.
Hong Kong Regulator Fines
DBS Bank HK$10 Million for AML Lapses
The HKMA's
investigation revealed that DBSHK failed to adequately monitor business
relationships and conduct enhanced due diligence in high-risk situations. The
bank also neglected to maintain proper records for some customers and lacked
effective procedures to fulfill its duties under the Anti-Money Laundering and
Counter-Terrorist Financing Ordinance (AMLO).
"The
HKMA requires banks to implement effective customer due diligence measures to
combat money laundering and terrorist financing," Raymond Chan, Executive
Director of Enforcement and Anti-Money Laundering at the HKMA, emphasized the
importance of robust compliance practices. "These measures should undergo
regular review to ensure their continued effectiveness."
Among the
specific lapses identified, DBS HK failed to obtain identity documents for 609
authorizers of its corporate internet banking service, IDEAL, affecting 477
corporate customers. The bank also neglected to establish the source of wealth
for 15 high-risk customers, potentially exposing itself to money laundering and
terrorist financing risks.
“The region’s crackdown on banks’ money laundering
activities marks a significant shift, with regulators intensifying their
efforts,” commented Rory
Doyle, Head of Financial Crime Policy at Fenergo.
In
determining the penalty, the HKMA considered several factors, including the
seriousness of the findings and the need to send a strong deterrent message to
the banking industry. The regulator also acknowledged that DBSHK has taken
remedial actions to address the identified deficiencies and has no previous
disciplinary record related to the AMLO.
$2.2 Billion Case
A
spokesperson for DBSHK responded to Bloomberg, stating that the
institution takes its AML (Anti-Money Laundering) and CTF (Counter-Terrorism
Financing) procedures "seriously" and accepts the regulator's
decision. However, they noted that the issues for which the fine was imposed
were "sporadic and historical in nature."
Last year,
DBS was fined for similar violations, along with Citibank, Oversea-Chinese
Banking Corp. (OCBC), and Swiss Life, for allegedly breaching Anti-Money
Laundering/Counter-Terrorism Financing (AML/CFT) requirements. The total fines
amounted to $2.83 million.
“Banks will
need to enhance their due diligence efforts significantly. Many will need to
perform comprehensive reviews of their compliance systems and quickly implement
necessary upgrades,” added Doyle.
While the
fine is relatively modest, it does not change the fact that one of Singapore's
largest banks has been involved in several major controversies in the past,
including a billion-dollar money laundering scheme, where the police secured
$2.2 billion.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Equinix Bets Big on AI Growth in $15 Billion Data Center Expansion: Report
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!