You are here: Home - News -

Singapore slaps Standard Chartered with anti-money laundering and terrorism fines

by:
  • 19/03/2018
  • 0
Singapore slaps Standard Chartered with anti-money laundering and terrorism fines
Standard Chartered Bank and Standard Chartered Trust were fined a combined £3.46m (S$6.4m) by the Monetary Authority of Singapore (MAS) for 33 breaches of anti-money laundering and terrorism financing laws.

 

The lender’s Singapore arm was fined £2.81m (S$5.2m), while its Singaporean trust unit was fined £0.65m (S$1.2m).

The breaches occurred when trust accounts of Standard Chartered customers were transferred from Guernsey to Singapore from December 2015 to January 2016.

Because the transfers took place shortly before new reporting standards were implemented in Guernsey, the MAS said that the timing of the transfers raised questions over whether the clients were attempting to avoid reporting obligations.

The MAS found the Standard Chartered’s risk management and controls to be “unsatisfactory”, and said the lender failed to file suspicious transaction reports in a timely manner.

However, the Singaporean watchdog noted the fines were mitigated, because Standard Chartered had “pro-actively” notified MAS of its internal review on the trust accounts, and has taken “prompt and substantive remedial measures” to strengthen its risk management and controls against monetary and terrorism financing.

The latest penalties also came less than two years after Standard Chartered was fined £2.81m (S$5.2m) for anti-money laundering breaches in relation to the 1MDB fund in December 2016.

 

Falling short

Ong Chong Tee, deputy managing director at MAS said: “MAS requires financial institutions to adequately assess money laundering risks when deciding whether to accept customers.

“They should also have in place good systems and processes to monitor customer transactions. We expect financial institutions to remain vigilant by instilling a strong risk culture.”

In an emailed statement, Standard Chartered said: “We regret that we fell short of our own standards in adequately mitigating the risks involving some clients who might have attempted to avoid reporting obligations.

“We take this matter very seriously. We proactively reported it to the authorities, conducted a thorough review of the relevant trust structures, and made structural and procedural changes to ensure that our employees are better equipped to identify, assess, and mitigate potential risks.

“We will continue to monitor, review and strengthen these measures to bolster our overall defence against potential financial crime risks.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • My week on Twitter 🎉: 104 Mentions, 47.7K Mention Reach, 66 Likes, 50 Retweets, 41.6K Retweet Reach. See yours with… https://t.co/WkMvPssFMF
  • Our first day of the Mortgage Administrator iVent has been a great success – don’t forget to join us again tomorrow… https://t.co/UPFl3MW119
  • Mortgage Administrator iVENT 2018: How to spot mortgage fraud - https://t.co/MM4uVITNgT
  • RT @DanielleDennis9: Our first ever virtual event is looking great! Make sure you log in today, take a look around the stands and watch the…
Read previous post:
FCA logo
FCA defends its record on corporate culture

The FCA's hit back over recent criticism that it has gone soft on tackling poor corporate culture, saying “role of...

Close