The HKMA investigated alleged control failures at DBS Bank between April 2012 and April 2019. The financial watchdog conducted an investigation under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615 of the Laws of Hong Kong).

The HKMA identified control discrepancies such as the inconsistent monitoring of business relationships, lapses in evaluating high-risk events, and gaps in proper recordkeeping regarding specific customers. The regulator also claims that DBS Bank did not implement effective procedures to meet the requirements of the prescribed legislation.

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When deciding on the penalty, the HKMA said that it considered the severity of the transgressions and the steps already taken to rectify the problems. The authority also wants to emphasise the “importance of effective controls and procedures to address money laundering and terrorist financing”.

According to the HKMA’s media release, DBS Bank has no prior missteps and cooperated with the investigation. The authority’s executive director of enforcement and AML, Raymond Chan, stated:

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.

DBS Group Holdings is an international provider of commercial banking and financial services. Its Asian focus includes operations in Singapore, where it is headquartered, and Hong Kong.

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