HKMA Imposes HK$10 Million Fine on DBS Bank (Hong Kong) for AML Failures
The
Hong
Kong
Monetary
Authority
(HKMA)
has
announced
a
disciplinary
action
against
DBS
Bank
(Hong
Kong)
Limited
(DBSHK),
imposing
a
significant
monetary
penalty
of
HK$10
million.
The
penalty
was
levied
for
contraventions
under
the
Anti-Money
Laundering
and
Counter-Terrorist
Financing
Ordinance
(AMLO),
according
to
the
Hong
Kong
Monetary
Authority.
Investigation
Findings
The
HKMA’s
investigation
revealed
several
deficiencies
in
DBSHK’s
compliance
systems.
These
included
failures
to
continuously
monitor
business
relationships,
conduct
enhanced
due
diligence
in
high-risk
situations
between
April
2012
and
April
2019,
and
maintain
proper
records
for
some
customers.
Additionally,
DBSHK
did
not
have
adequate
procedures
to
fulfill
its
duties
under
the
AMLO
during
this
period.
Factors
Considered
in
the
Disciplinary
Action
In
determining
the
disciplinary
action,
the
Monetary
Authority
considered
various
factors:
-
The
seriousness
of
the
investigation
findings. -
The
necessity
to
send
a
clear
deterrent
message
to
the
industry
regarding
the
importance
of
effective
anti-money
laundering
and
counter-terrorist
financing
controls. -
Remedial
actions
taken
by
DBSHK
to
address
identified
deficiencies
and
improve
compliance
measures. -
DBSHK’s
lack
of
previous
disciplinary
records
related
to
the
AMLO
and
its
cooperation
during
the
investigation
and
enforcement
proceedings.
Official
Statement
Ms.
Raymond
Chan,
Executive
Director
(Enforcement
and
AML)
of
the
HKMA,
emphasized
the
importance
of
effective
customer
due
diligence
measures
to
combat
money
laundering
and
terrorist
financing.
She
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.”
Industry
Implications
This
disciplinary
action
sends
a
strong
message
to
financial
institutions
about
the
critical
importance
of
maintaining
robust
anti-money
laundering
and
counter-terrorist
financing
controls.
It
underscores
the
HKMA’s
commitment
to
enforcing
compliance
and
ensuring
that
financial
institutions
adhere
strictly
to
regulatory
requirements.
Image
source:
Shutterstock
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