Hong Kong Monetary Authority Fines IOB ₹93.5 Million For AML Lapses

The Hong Kong Monetary Authority has imposed a fine of HK$8.5 million (around ₹93.5 million) on the Hong Kong branch of Indian Overseas Bank for failing to effectively manage money-laundering and terrorist-financing risks.

The regulator flagged "significant failures" in the bank's anti-money laundering (AML) and counter-financing of terrorism (CFT) controls, citing weak management oversight, lack of clear leadership on compliance, and failure to appoint a competent compliance officer.

The branch was also found to have inadequate internal controls for transaction monitoring, poor policies and procedures, and insufficient staff training.

"Effective transaction monitoring enables timely identification and reporting of suspicious transactions," said Raymond Chan, executive director, enforcement and anti-money laundering at the authority.