MAS Announces Sanctions Against DBS For ‘Repeated’ & Prolonged Disruptions
UPDATE (1 Nov, 8pm): DBS released an official statement expressing their apology for the past disruptions. The bank has also laid out a roadmap to improve its technology resiliency and address the issues.
The Singapore central bank has taken swift steps against DBS for its “repeated and prolonged disruptions” this year.
On Wednesday (1 Nov), the Monetary Authority of Singapore (MAS) announced its imposition of a pause on new business ventures by DBS for a period of 6 months.
During this period, DBS will not be able to reduce the size of its branch and ATM networks in Singapore.
DBS banned from making non-essential IT changes for 6 months
Singapore central bank MAS issued a press release on Wednesday (1 Nov) evening announcing the sanctions against DBS for its “repeated and prolonged disruptions”this year.
This came slight more than two weeks after a widespread disruption on 14 Oct.
This wasn’t the first time such a disruption happened, after several similar occurrences earlier in the year.
Following the incidents, MAS has imposed a 6-month suspension of non-essential IT changes. Exceptions to these changes include those relating to security, regulatory compliance, and risk management.
During this period, the authority will not approve any new business ventures by DBS.
MAS explained that they imposed the restriction so DBS could focus all the necessary resources and attention to fortify its technology risk management system and controls.
Moreover, they have disallowed the bank from reducing the size of its branch and ATM networks. This is to provide enough alternative channels for customers in case of further disruption.
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Featured image adapted from DBS.