The Hong Kong Monetary Authority (HKMA) has imposed a penalty of HK$10m against DBS Bank (Hong Kong) after an investigation which revealed continuous anti-money laundering and counter-terrorist financing failings over seven years.
The control deficiencies identified in the investigation relate to DBSHK’s failure to continuously monitor business relationships and conduct enhanced due diligence in high risk situations during various periods between April 2012 and April 2019, as well as its failure to keep records in respect of some of the customers, the regulator said in a statement on 5 July.
DBSHK also failed to maintain effective procedures for carrying out its AML duties during this period, it said.
Raymond Chan, executive director (enforcement and AML) of the HKMA said: “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.”
