The Hong Kong Financial Authority (HKMA) has introduced a disciplinary motion in opposition to DBS Financial institution (Hong Kong) Restricted (DBSHK), imposing a major financial penalty of HK$10 million. The penalty was levied for contraventions underneath the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance (AMLO), based on the Hong Kong Financial Authority.
Investigation Findings
The HKMA’s investigation revealed a number of deficiencies in DBSHK’s compliance programs. These included failures to repeatedly monitor enterprise relationships, conduct enhanced due diligence in high-risk conditions between April 2012 and April 2019, and keep correct information for some prospects. Moreover, DBSHK didn’t have enough procedures to meet its duties underneath the AMLO throughout this era.
Elements Thought-about within the Disciplinary Motion
In figuring out the disciplinary motion, the Financial Authority thought-about varied components:
- The seriousness of the investigation findings.
- The need to ship a transparent deterrent message to the business concerning the significance of efficient anti-money laundering and counter-terrorist financing controls.
- Remedial actions taken by DBSHK to deal with recognized deficiencies and enhance compliance measures.
- DBSHK’s lack of earlier disciplinary information associated to the AMLO and its cooperation throughout the investigation and enforcement proceedings.
Official Assertion
Ms. Raymond Chan, Govt Director (Enforcement and AML) of the HKMA, emphasised the significance of efficient buyer due diligence measures to fight cash laundering and terrorist financing. She acknowledged, “The HKMA requires banks to place in place efficient buyer due diligence measures to fight cash laundering and terrorist financing. These measures ought to be topic to common overview to make sure that they continue to be efficient.”
Business Implications
This disciplinary motion sends a powerful message to monetary establishments in regards to the crucial significance of sustaining strong anti-money laundering and counter-terrorist financing controls. It underscores the HKMA’s dedication to implementing compliance and making certain that monetary establishments adhere strictly to regulatory necessities.
Picture supply: Shutterstock
