Germany's Commerzbank AG is facing regulatory scrutiny in Singapore for its alleged negligence in complying with know-your-customer norms, Handelsblatt Global reported Feb. 6, citing unnamed sources.
The Singaporean authorities are closely monitoring the bank after sources said it was not doing enough to comply with know-your-customer, or KYC, rules meant to prevent financial crime. The KYC norms require banks to exercise due diligence of new clients and to ensure that existing customers continue to meet compliance standards.
A Commerzbank source told the publication that the bank was taking the matter seriously and "wants to tackle the issues vigorously."
The bank recently removed a high-ranking compliance manager because of the issues and tasked London-based employee Vijay Radhakishun and his team to address the problems, the publication noted.
Earlier in December 2017, the U.K. Financial Conduct Authority warned Commerzbank's London branch for insufficient compliance with KYC norms.
