Hong Kong’s banking regulator fined the Hong Kong branch of DBS Group Holdings, Singapore’s largest bank, HK$10 million ($1.28 million) for breaching anti-money laundering (AML) and counter-terrorist financing laws. The Hong Kong Monetary Authority (HKMA) announced on Friday that the penalty followed an investigation into control failures at DBS Bank (Hong Kong) from April 2012 to April 2019.
This scrutiny mirrors that of Singapore, another major financial hub, which fined four financial institutions, including DBS, for similar AML violations a year ago. The HKMA found that DBS had not consistently monitored business relationships or conducted enhanced due diligence in high-risk situations. Additionally, DBS failed to maintain some customer records.
Raymond Chan, executive director of the HKMA, emphasized the importance of effective customer due diligence to combat money laundering and terrorist financing. A DBS Hong Kong spokesman acknowledged the bank’s commitment to AML obligations and accepted the HKMA’s decision. He noted that the issues were sporadic and occurred between April 2012 and April 2019, and that the bank has since implemented new policies to better detect and manage money laundering risks.