The Monetary Authority of Singapore (MAS) has imposed a fine of S$2.5 million on Swiss-Asia Financial Services for several breaches of anti-money laundering and terrorism financing requirements.
In addition to the fine, the company’s chief executive officer and chief operating officer have received reprimands for their failure to ensure compliance with these regulations.
MAS highlighted that Swiss-Asia Financial Services experienced significant business growth between September 2015 and October 2018. However, the company’s control measures did not keep pace with this expansion, leaving it vulnerable to financial crime risks.
During MAS’ inspection, various breaches were uncovered. These included the failure to consider relevant risk factors related to customers and business activities in its risk assessment, as well as the failure to conduct customer due diligence measures before establishing business relations.
Furthermore, the company neglected to scrutinize certain third-party transactions in customers’ accounts, despite inconsistencies with its knowledge of the customers. It also failed to identify high-risk customers and adequately establish the source of wealth or funds for these customers and their beneficial owners.
Additionally, Swiss-Asia Financial Services did not obtain senior management approval for establishing or continuing business relations with some higher-risk customers. It also neglected to submit suspicious transaction reports and conduct internal audits to monitor the effectiveness of its anti-money laundering controls.
The CEO and COO of Swiss-Asia Financial Services, Olivier Pascal Mivelaz and Steve Knabl, were reprimanded for their failure to ensure compliance with MAS’ requirements and oversee internal audits effectively.
The company has since taken remedial actions to address the identified deficiencies.
MAS emphasized the importance for financial institutions, especially those serving high net worth individuals, to mitigate money laundering and terrorism financing risks effectively. It expects boards and senior management to establish adequate controls, actively oversee their implementation, and ensure that compliance and internal audit functions keep pace with business growth.
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