New Delhi: State-owned lender SBI on Wednesday said the fine imposed by Hong Kong Monetary Authority (HKMA) on its arm for alleged violation of local anti-money laundering and counter-terror financing laws does not have any material impact on the bank.
"The regulatory action by the Hong Kong Monetary Authority is not considered to be material as the quantum of monetary penalty at HKD 7,500,000 (approximately Rs 6.17 crore) is very small considering the size of our balance sheet and profits," State Bank of India said in a filing on the BSE.
It said the authority has very clearly stated in the order, hosted on its website, that there was nothing involving any actual money laundering transactions or breaches of sanctions by SBI's Hong Kong operations.
The control gaps were related to the past and have since been remediated with appropriate enhancements in policies and procedures, it said.
"HKMA have also acknowledged the very positive and intensive remediation work undertaken by the Hong Kong branch.
This being so the development is not expected to have any impact on our future operations or profitability or financials," it said.
This was the first action by the HKMA under Hong Kong's Anti Money-Laundering Ordinance, which came into force in 2012.
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