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Bank shutdown – the new frontier of AML/CTF regulation

The Money Authority of Singapore’s recent announcement that it intends to withdraw BSI Bank Limited’s licence highlights the potentially severe consequences for banks breaching their AML obligations – and a trend beyond mere financial penalties. It also highlights the ever-increasing risks for individuals.

This article summarises the key facts of the BSI Bank matter.  It also provides four important takeaways for financial institutions operating in Hong Kong – namely:

  1. It could happen here – that is, there are grounds for revoking licences, imposing fines and exacting criminal penalties on individuals in Hong Kong (and many other jurisdictions);
  2. Engage with your regulators – arguably one of the key issues in the BSI Bank matter.  We provide our key tips for meaningful engagement;
  3. Get the basics right, then keep evolving – why getting it right means thinking ahead, knowing where the industry is going and being ahead of the enforcement agenda; and
  4. Engage in upcoming developments – including our expected focus areas of regulatory technology, source of wealth/funds, politically exposed persons, trafficking and slavery, correspondent banking and data-sharing.

Click here for our full article.

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