DBS fined by Hong Kong regulator for violating anti-money laundering rules

The disciplinary action follows an investigation by the Hong Kong Monetary Authority of DBS Hong Kong’s systems and controls.

DBS Group Holdings was fined HK$10 million ($1.73 million) by Hong Kong’s regulator for lapses in adhering to anti-money laundering and counter-terrorist financing regulations.

The disciplinary action follows an investigation by the Hong Kong Monetary Authority of DBS Hong Kong’s systems and controls for compliance, the regulator said in a statement. The lapses took place during periods between April 2012 and April 2019. 

DBS did not immediately respond to a request for comment.

The fine, while small, will be another stain for Singapore’s largest bank, which is among lenders ensnared in a money laundering scandal in its home city. More than $3 billion of assets have been frozen or seized by the police in this case, and DBS had significant exposure through funds held in its accounts and loans made.

Hong Kong authorities identified a failure to continuously monitor business relationships and conduct enhanced due diligence in high risk situations. The bank also failed to keep records on some of customers, the regulator said. 

“The HKMA requires banks to put in place effective customer due diligence measures to combat money laundering and terrorist financing,” said Raymond Chan, executive director of the Hong Kong Monetary Authority.