SINGAPORE: DBS Bank has approximately S$100 million in exposure to Singapore’s recent S$2.8 billion money laundering scandal, confirmed DBS CEO Piyush
SINGAPORE: DBS Bank has approximately S$100 million in exposure to Singapore’s recent S$2.8 billion money laundering scandal, confirmed DBS CEO Piyush Gupta on Monday (Nov 6). In August, Singapore police detained 10 foreign nationals of Chinese origin tied to the case, which has led to tighter scrutiny and policy adjustments across Singapore’s financial institutions.
In a briefing on the bank’s third-quarter performance, where net profits rose by 18% due to higher interest rates, Gupta mentioned that DBS has filed multiple suspicious transaction reports related to the matter. Despite the scandal, Gupta noted that Singapore continues to see consistent fund inflows, saying, “I don’t see the flows to suffer.”
In connection to the arrests, DBS and the Bank of Singapore were reported as creditors to companies linked to the accused. DBS had secured four charges with Aiqinhai Investment, directed by Su Haijin, one of the accused.
Amid the challenges, Gupta remained confident about the bank’s resilience, stating, “Higher-for-longer interest rates will be a net benefit to earnings, while our solid balance sheet…will provide us with strong buffers against macro uncertainties.”
The Monetary Authority of Singapore (MAS) recently ordered DBS to pause non-essential IT upgrades following repeated digital service disruptions, preventing DBS from undertaking new business ventures during the six-month period. DBS has since committed S$80 million to boost system resilience.
COMMENTS