UBS AG (Hong Kong Branch)

Composition penalty for AML/CFT breaches found in examinations after the 2023 money laundering case

MAS imposed a S$3 million composition penalty on UBS AG, Singapore Branch, one of nine FIs penalised after examinations from early 2023 to early 2025. MAS named the branch among FIs that failed to follow up on source of wealth discrepancies and to adequately review transactions flagged by their own systems.

Eight FIs (BJBS, Citi, CSSB, LGTS, UOB, UOBKH, TTCSPL, UBSS) failed to adequately review

MAS said the institutions have embarked on remediation and it will monitor progress.

Pecuniary penalty of HK$9,000,000 for AMLO contraventions (missed periodic customer reviews; incomplete CDD after suspicious transactions)

The Monetary Authority found that UBS AG, Hong Kong Branch missed periodic reviews for 5,726 customers because of a system error (April 2012 to November 2014) and did not complete due diligence on some pre-existing customers after suspicious transactions (April 2012 to October 2015). It ordered a pecuniary penalty of HK$9,000,000. The same announcement covered three other banks with a combined HK$44.2 million; the HK$9 million is UBS's share only.

to order it to pay a pecuniary penalty of HK$9,000,000

The MA considered the bank's remedial and enhancement measures.

Reprimand and HK$400 million fine for overcharging about 5,000 client accounts over ten years and related internal control failures

The SFC found that staff in UBS's Wealth Management division increased bond and structured note spreads after execution without client knowledge (2008 to 2015), charged fees above disclosed rates (2008 to 2017), failed to disclose conflicts and reported the misconduct two years late; about 5,000 Hong Kong-managed accounts and 28,700 transactions were affected. UBS AG was reprimanded and fined HK$400 million and agreed to repay about HK$200 million with interest. The SFC also cited 15 incidents on the new One Wealth Management Platform.

The Securities and Futures Commission (SFC) has reprimanded and fined UBS AG (UBS) HK$400 million for overcharging

Repayment of overcharged amounts plus interest (about HK$200 million), independent reviewers appointed, more than 20 staff disciplined, clients to be written to within one month.

Final notice: transaction reporting failures

The FCA fined UBS AG GBP 27,599,400 for transaction reporting failures in its investment bank business. Recorded from the FCA 2019 fines list.

UBS AG | 19/03/2019 | £27,599,400 | Transaction reporting failures (investment bank sector)

HK$375 million fine and one-year partial licence suspension for IPO sponsor failures (China Forestry, Tianhe Chemicals and one other listing)

The SFC reprimanded and fined UBS AG and UBS Securities Hong Kong Limited HK$375 million for failing to discharge their duties as joint sponsor on three listing applications, including not verifying China Forestry's assets and letting Tianhe control due diligence interviews. UBS Securities Hong Kong's licence to advise on corporate finance was partially suspended for one year and a sponsor principal was suspended for two years. UBS agreed to an independent review of its sponsor practices.

partially suspended UBS Securities Hong Kong's licence to advise on corporate finance for one year

Independent reviewer engaged to assess sponsor policies, procedures and practices.

Financial penalties for 13 breaches of MAS Notice 626 (AML) in 1MDB-related review

In its 1MDB-related review MAS imposed financial penalties of S$1.3 million on UBS AG, Singapore Branch for 13 breaches of MAS Notice 626. MAS admonished the bank, directed management to remediate and discipline staff, and required an independent party to verify rectification.

S$1.3 million on UBS for 13 breaches of MAS Notice 626

Independent party to verify rectification and report to MAS; disciplinary action against staff.

Final notice: failings in G10 spot FX trading controls (five-bank settlement)

The FCA fined UBS AG GBP 233,814,000 (USD 371 million) for FX control failings between 1 January 2008 and 15 October 2013; the FCA noted UBS's relevant desk was based only in Zurich. Investment bank conduct of the legal entity UBS AG, of which the London Branch is part.

and UBS AG £233,814,000 ($371 million) ('the Banks').