In a regulatory filing with the stock exchanges under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the bank disclosed that HKMA found contraventions of Section 23, Section 19(3), and paragraph (c) of Section 5(1) of Schedule 2 to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). These violations occurred between May 2021 and January 2024.
As part of the enforcement action, the HKMA has directed IOBHK to conduct a look-back review of transaction alerts generated by its transaction monitoring system. The branch has also been instructed to submit a remedial action plan, provide a report from an independent external advisor evaluating the effectiveness of these measures, and pay a pecuniary penalty.
The order was received by the bank on July 22, 2025.
In response, IOB stated that both the bank and its Hong Kong branch have taken necessary preventive steps to strengthen internal controls and ensure there is no recurrence of such incidents. The bank further clarified that the impact of the disciplinary action on its financial or operational activities is not material.
