July 5, 2024 – The Hong Kong Monetary Authority (HKMA) has imposed a fine of HK$10 million (approximately $1.3 million) on the local branch of Singapore’s DBS Bank for breaches of anti-money laundering regulations. The banking regulator announced the penalty on Friday, citing significant lapses in the bank’s compliance practices.
According to the HKMA, DBS Bank failed to effectively monitor its business relationships and did not conduct enhanced due diligence in high-risk situations over a span of seven years. The investigation revealed “control deficiencies,” including the failure to maintain required records for some customers as mandated by the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
DBS, Southeast Asia’s largest bank, was previously implicated in a billion-dollar money-laundering scandal in Singapore last year.
Raymond Chan, an executive director at the HKMA, emphasized the importance of banks implementing robust customer due diligence measures to combat money laundering and terrorist financing, stating that these measures must be regularly reviewed.
In response, DBS Hong Kong acknowledged the HKMA’s decision and reiterated its commitment to anti-money laundering obligations. The bank described the identified issues as “sporadic and historical,” occurring between April 2012 and April 2019.
DBS Hong Kong has been actively collaborating with regulators to enhance its anti-money laundering controls and has introduced policies that significantly improve its ability to detect and mitigate money laundering risks.