DFSA fines Bank of Singapore $1.1m citing inadequate AML controls
The Dubai Financial Services Authority (DFSA) has levied a fine of $1.1 million on the Dubai branch of Bank of Singapore citing “a number of contraventions of DFSA legislation, including for having inadequate systems and controls including those relating to anti-money laundering (AML)”.
DFSA hands Bank of Singapore $1.1m fine
The DFSA claims it found deficiencies in the bank’s AML business risk assessments, client risk assessments, customer due diligence practices, suspicious activity reporting and identification of clients’ sources of funds.
The regulatory authority says it also found that the bank acted outside the scope of its DFSA licence “by arranging deals in investments in relation to rights under long-term insurance contracts, when not authorised to do so”. The bank has since applied to the DFSA for the requisite permissions.
The fine was reduced from an original amount of $2 million to $1.1 million as the bank “offered the DFSA an Enforceable Undertaking (EU) to remediate the failings and agreed to settle the matter”. The bank has also agreed to bring in an external compliance expert in its efforts to comply with obligations.
“The DFSA has a high degree of concern over any AML related contraventions and will take appropriate action to make sure that the systems and controls implemented by authorised firms operating in the DIFC (Dubai International Financial Centre) are robust,” says Ian Johnston, chief executive of the DFSA.
