DBS staff in Hong Kong arrested amid alleged data leak
DBS logo. TODAY file photo
SINGAPORE — Several employees of DBS Group Holdings in Hong Kong have been arrested in a probe connected with an alleged leak of customer data, prompting the Singapore bank to say on Friday (Dec 9) that it takes its obligations to curtail financial crime “very seriously”.
The Monetary Authority of Singapore (MAS) said it was aware of the investigations. Adding that DBS was cooperating with the Hong Kong authorities, the central bank said: “As DBS’ home regulator, we expect DBS’ business practices both in Singapore and abroad to be compliant with local laws and regulations.”
In a statement on Friday, the Hong Kong Monetary Authority expressed concern over the matter and said it will “follow up with the relevant bank”.
Hong Kong tabloid Apple Daily reported earlier this week that more than 20 current and former DBS executives and staff were arrested following an investigation by Hong Kong’s anti-corruption agency.
The staff had allegedly bribed department managers to illegally obtain the personal particulars of customers, including names and contact details.
The information was later passed on to a call centre in mainland China, which used it for marketing purposes, and commissions from deals were split between the Hong Kong staff and mainland call centre.
A DBS spokesperson in Singapore confirmed the arrests and told TODAY that its Hong Kong office had alerted the Independent Commission Against Corruption (ICAC) after internal monitoring turned up irregularities.
The bank disputed the Apple Daily report that more than 20 current and former staff had been arrested, but did not specify a number. It is unclear if any of the staff arrested are Singaporean. The bank declined to provide further details, citing the ongoing investigation.
“DBS Hong Kong takes our obligations to curtail financial crime very seriously and the bank will cooperate fully with any law enforcement agency on their investigations. This includes informing authorities when we become aware of matters which require their attention. Together with our regulators and the industry, we intend to intensify our efforts in collaborating and fighting against financial crime,” it said in response to queries from TODAY.
When contacted, an ICAC spokeswoman told TODAY that the agency does not discuss individual cases.
According to the Apple Daily report, several staff from the direct sales team allegedly obtained the data and handed it to a mainland call centre, which then contacted DBS clients to try to get them to borrow from the bank. If the lobbying was successful, the DBS staff would then complete the loan formalities, with the bank’s employees and the mainland call centre splitting commissions 30:70 respectively, the report said, citing unidentified sources.
Some of DBS’ direct sales team members had allegedly made monthly sales exceeding HK$1 million (S$183,870), arousing suspicion from other departments. At the same time, DBS also received complaints from customers who reported receiving calls from telemarketers claiming to be from DBS, the report said.
Internal investigations, however, showed that the calls originated from the mainland call centre, which DBS had not commissioned for marketing purposes, the report said.
DBS alerted the ICAC to the irregularities and the agency raided the homes of several current or former employees early this week, placing more than 20 people under custody or to assist in investigation. WITH AGENCIES
