DBS Reacts to MAS Ruling

DBS, the local bank caught up in the Monetary Authority of Singapore ruling over the fund flows of the Malaysian wealth fund 1MDB, has been quick to issue a statement in response to the fine and censure it received.

The ruling from the regulator will have hurt DBS which was recently named «Safest Bank in Asia» for the eighth consecutive year by New York-based trade publication Global Finance.

The bank reacted swiftly to the Monetary Authority of Singapore (MAS) ruling. The MAS has imposed financial penalties amounting to S$1 million on DBS for 10 breaches of MAS Notice 626, Money Laundering and Countering the Financing of Terrorism. DBS said it would be taking appropriate actions to hold responsible staff accountable, which will include senior executives.

DBS Statement on 1MDB Failings

«DBS takes our anti-money laundering obligations seriously and accepts MAS’ decision. While MAS’ findings indicate that the bank’s control weaknesses are not pervasive, we should have taken more rigorous action with respect to the questionable activity, even if it was intentionally designed to conceal another purpose. These actions are for lapses which occurred in 2013 and 2014. We have made many enhancements since then and are in a materially better position than before,» reads a statement sent on Tuesday.

And: «Reinforcing a culture that is sensitive to regulations and suitability of transactions is very important to us. To ensure this, DBS will be taking appropriate actions to hold responsible staff accountable, which will include our senior executives. Further, we will be donating profits attributable to our shortcomings to a worthy cause. Together with our regulators and the industry, we intend to intensify our efforts in collaborating and fighting financial crime.»

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