Hong Kong Monetary Authority fines Fubon Bank HK$4m

Editorial

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This follows Fubon financial institution self-reported transaction monitoring failures and the financial authority’s investigation into the financial institution’s techniques and controls for compliance.

The HKMA discovered that, between April 2019 and July 2022, Fubon Financial institution “failed to ascertain and preserve efficient procedures for constantly monitoring enterprise relationships with prospects.”

The regulator stated this was particularly a failure to have efficient procedures for managing system adjustments in place, following up on a considerable lower in transaction alerts, and often reviewing the scope of transactions lined by its transaction monitoring system. Moreover, HKMA said the financial institution did not conduct applicable scrutiny of transactions carried out for patrons, and replace buyer due diligence evaluations upon “set off occasions”.

Raymond Chan, government director, enforcement and AML, HKMA, stated: “The AMLO requires banks to place in place efficient procedures for steady monitoring of their enterprise relationships with prospects in order that potential cash laundering and terrorist financing actions are detected early. When adjustments are launched to current monitoring techniques, financial institution administration ought to be sure that the scope of surveillance covers all related transactions and any recognized deficiencies are adopted up promptly.”