The Monetary Authority of Singapore (MAS) has fined
Citibank, DBS Bank, Oversea-Chinese Banking Corp (OCBC), and Swiss Life a
collective sum of S$3.8 million ($2.83 million) for allegedly breaching
anti-money laundering and countering the financing of terrorism (AML/CFT)
requirements. The regulator said the alleged violations relate to the
irregularities around the collapse of Wirecard.
DBS, OCBC, Citibank, and Swiss Life agreed to pay S$ 2.6
million, S$ 600,000, S$ 400,000, and S$ 200,000, respectively, according to a
statement issued today (Wednesday). MAS, however, said it did not find any misconduct by
the staff of the implicated financial institutions.
Wirecard was a German
provider of outsourcing solutions for electronic payments transactions that
imploded in 2020 after a 1.9 billion euro ($2.3 billion) deficit was discovered
in its books. Wirecard SG, the Singapore-based affiliate of the company, later
filed for bankruptcy, owing creditors approximately $4 billion, and was
directed to cease operations in the region.
“As Singapore grows
its importance as an international financial center, MAS expects our financial
institutions to step up their controls against facilitating illicit financial
flows,” noted Ho Hern Shin, Deputy Managing Director for Financial
Supervision at MAS.
“They must
implement robust measures to know their customers, monitor ongoing transactions
to ensure that these are consistent with their understanding of their customers
and their businesses, and exercise greater vigilance when customers use complex
structures,” Shin added.
Regarding Citibank, the
regulator said the lender failed to understand the control structure of two of
its corporate accounts. Responding to the claim, Citi said it had since taken steps to strengthen its KYC processes, according to a spokesperson quoted by Reuters.
Lapses in AML/CFT
On the other hand, DBS, whose fine is one of the largest
issued by MAS, is alleged to have had lapses in security checks related to 11
corporate accounts and did not update customer risk ratings to ascertain the
source of funds. The lender responded that the fraudulent transactions were part of an
elaborately orchestrated scheme.
OCBC told Reuters that one of its customers had been implicated in the Wirecard case
and that it had committed resources to strengthen its anti-money laundering
procedures. According to MAS, the financial institution did not inquire about
the background and purpose of the fraudulent transactions despite not being
consistent OCBC’s knowledge of the account holders.
Nonetheless, MAS said the accused financial institutions had taken remedial actions to address the lapses identified in their AML/CFT
controls, including enhancing their procedures and processes and conducting staff training.
The Monetary Authority of Singapore (MAS) has fined
Citibank, DBS Bank, Oversea-Chinese Banking Corp (OCBC), and Swiss Life a
collective sum of S$3.8 million ($2.83 million) for allegedly breaching
anti-money laundering and countering the financing of terrorism (AML/CFT)
requirements. The regulator said the alleged violations relate to the
irregularities around the collapse of Wirecard.
DBS, OCBC, Citibank, and Swiss Life agreed to pay S$ 2.6
million, S$ 600,000, S$ 400,000, and S$ 200,000, respectively, according to a
statement issued today (Wednesday). MAS, however, said it did not find any misconduct by
the staff of the implicated financial institutions.
Wirecard was a German
provider of outsourcing solutions for electronic payments transactions that
imploded in 2020 after a 1.9 billion euro ($2.3 billion) deficit was discovered
in its books. Wirecard SG, the Singapore-based affiliate of the company, later
filed for bankruptcy, owing creditors approximately $4 billion, and was
directed to cease operations in the region.
“As Singapore grows
its importance as an international financial center, MAS expects our financial
institutions to step up their controls against facilitating illicit financial
flows,” noted Ho Hern Shin, Deputy Managing Director for Financial
Supervision at MAS.
“They must
implement robust measures to know their customers, monitor ongoing transactions
to ensure that these are consistent with their understanding of their customers
and their businesses, and exercise greater vigilance when customers use complex
structures,” Shin added.
Regarding Citibank, the
regulator said the lender failed to understand the control structure of two of
its corporate accounts. Responding to the claim, Citi said it had since taken steps to strengthen its KYC processes, according to a spokesperson quoted by Reuters.
Lapses in AML/CFT
On the other hand, DBS, whose fine is one of the largest
issued by MAS, is alleged to have had lapses in security checks related to 11
corporate accounts and did not update customer risk ratings to ascertain the
source of funds. The lender responded that the fraudulent transactions were part of an
elaborately orchestrated scheme.
OCBC told Reuters that one of its customers had been implicated in the Wirecard case
and that it had committed resources to strengthen its anti-money laundering
procedures. According to MAS, the financial institution did not inquire about
the background and purpose of the fraudulent transactions despite not being
consistent OCBC’s knowledge of the account holders.
Nonetheless, MAS said the accused financial institutions had taken remedial actions to address the lapses identified in their AML/CFT
controls, including enhancing their procedures and processes and conducting staff training.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- EVM Finance. Unified Interface for Decentralized Finance. Access Here.
- Quantum Media Group. IR/PR Amplified. Access Here.
- PlatoAiStream. Web3 Data Intelligence. Knowledge Amplified. Access Here.
- Source: https://www.financemagnates.com//institutional-forex/singapore-fines-banks-insurer-28m-for-breaches-linked-to-wirecard-case/
