Guotai Junan Securities [2611:HK] was fined HKD25.2m by Hong Kong’s Securities and Futures Commission (SFC) for violating anti-money laundering and other regulatory rules, as reported by Eastmoney on June 23. HK SFC claimed that Guotai Junan Securities had a number of internal monitoring deficiencies and irregularities, which were related to anti-money laundering, processing third-party fund transfers, detecting false transactions, and delaying reporting.
HK SFC also stated that Guotai Junan Securities had taken several remedial measures to correct the issues regarding the company’s transaction monitoring systems and procedures. Guotai Junan Securities has also strengthened its policies and procedures on anti-money laundering and terrorist financing. In addition, the company promised to provide a report prepared by an independent review body within 12 months to confirm that all identified concerns have been properly corrected. In recent years, with the tightened supervision system in Hong Kong’s financial market, several Chinese securities firms based in Hong Kong, have been fined by the HK SFC. Guangdong Securities was fined HKD3m by SFC in March 2017 for failing to comply with anti-money laundering guidelines when processing third-party payments. In February 2020, Guosen Securities [002736:CH] was fined HKD15.2m since it had not established any system or monitoring mechanisms to identify and monitor third-party deposits.