Standard Chartered hit with money-laundering and terrorism fine
The fine relates to transfers from the lender’s Guernsey operations to its counterpart in the Asian nation in 2015 and 2016.
Standard Chartered has been slapped with a 5.2 million Singapore dollar (£2.8 million) fine for breaching anti-money laundering and anti-terrorism funding regulations.
The fine, meted out by the Monetary Authority of Singapore, relates to transfers from the lender’s Guernsey operations to its counterpart in the Asian nation in 2015 and 2016.
Singapore’s central bank said risk management and controls in relation to the transfers were “unsatisfactory” and the timing of the transfers raised questions of whether the clients involved were attempting to avoid Common Reporting Standards obligations.
It accused Standard Chartered of failing to “adequately assess and mitigate” against this risk factor, and of failing to file suspicious transaction reports in a timely manner.
MAS deputy managing director Ong Chong Tee 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.”
Standard Chartered Trust was also fined 1.2 million Singapore dollars (£652,000) in relation to the breach.
However, MAS added that Standard Chartered “pro-actively” notified it of its own internal review into the matter and management showed “strong commitment to address the deficiencies identified”.
The lender has also taken “prompt and substantive remedial measures” to strengthen its anti-money laundering and anti-terrorism risk management and controls.