The State Bank of India said it has fixed certain “control gaps” in its Hong Kong branch that led to a fine of Rs 6.17 cr by the local regulator.
‘”The control gaps related to the past and have since been remediated with appropriate enhancements in policies and procedures,” SBI said.
“HKMA (Hong Kong Monetary Authority) have also acknowledged the very positive and intensive remediation work undertaken by the Branch. This being so the development is not expected to have any impact on our future operations or profitability or financials,” India’s largest bank said.
News of the fine first appeared in the DNA newspaper on Aug 1.
SBI said investors were not informed of the fine as the amount was “very small considering the size of our balance sheet and profits.”
“Further, HKMA have very clearly stated in their order, hosted on their website, that there was nothing involving any actual money laundering transactions or breaches of sanctions by our Hong Kong operations,” it added.