DBS suspends non-essential travel to conflict-hit areas in Middle East as tensions rise
TOKYO: Several major banks, including DBS, are restricting travel to conflict-hit areas in the Middle East as tensions between Israel and Iran escalate.
United States President Donald Trump had earlier announced a ceasefire between the two countries, but Israel announced on Tuesday (Jun 24) that it had ordered an attack on Tehran after Iran violated the truce by firing missiles at it. Iran has denied violating the ceasefire.
The conflict threatens years of effort by Middle Eastern governments to court global financial firms as part of plans to diversify their economies away from oil.
Countries such as Saudi Arabia and the United Arab Emirates have pushed to position themselves as regional financial hubs, offering incentives and regulatory reforms to attract banks and asset managers.
DBS said on Tuesday that it had suspended all non-essential travel to the conflict-affected areas.
"We are closely monitoring the evolving situation in the Middle East, including developments in and around Dubai," a DBS spokesperson told Reuters.
Ang Wee Khoon, head of risk management at the DIFC branch of Bank of Singapore, one of Asia's biggest private banks, told Reuters the bank has halted all non-essential travel to and from Dubai.
"The safety of our staff is our highest priority, and we stand ready to activate our business continuity plans while minimising the disruptions to clients," Ang said.
US-based JPMorgan is allowing only essential travel in and out of the Middle East for employees, a person familiar with the matter told Reuters on Monday.
The largest US bank is offering support to employees on an individual basis, as needed, the source added, requesting anonymity to discuss confidential information.
Goldman Sachs has also asked its staff in Israel to work remotely about a week ago, according to a source familiar with the matter.
EVACUATIONS
Meanwhile, some major Japanese banks have begun evacuating their staff from the region.
A spokesperson for Japan's Sumitomo Mitsui Financial Group said it started evacuating staff from locations including Iran and Qatar to ensure their safety.
Japan's Mitsubishi UFJ Financial Group has also begun evacuating some family members of staff from Dubai and the Saudi Arabian capital Riyadh, a spokesperson said, and is also considering allowing staff to leave at their own discretion.
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