The Hong Kong Financial Authority (HKMA) introduced as we speak that it had accomplished an investigation and disciplinary proceedings for EFG Financial institution AG, Hong Kong Department (EFGHK) below the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance (AMLO).
The regulator has imposed a pecuniary penalty of HK$16,000,000 in opposition to EFGHK for contraventions of the AMLO.
The disciplinary motion follows an on-site examination and additional investigation by the HKMA on EFGHK’s methods and controls for compliance with the AMLO. The investigation recognized management deficiencies in respect of conducting buyer due diligence (CDD) on clients transferred from one other monetary establishment in the course of the interval from 21 February 2016 to 16 January 2018, in addition to on-boarding CDD and on-going CDD measures on another clients in the course of the interval from 1 April 2012 to 31 October 2018.
As well as, in the course of the interval from 1 April 2012 to 31 October 2018, EFGHK failed to determine and preserve efficient procedures for finishing up its duties below the AMLO in relation to CDD and on-going monitoring of enterprise relationships with clients.
In deciding the disciplinary motion, the regulator has taken under consideration quite a lot of components, together with the seriousness of the investigation findings and the necessity to ship a transparent deterrent message to EFGHK and the trade concerning the significance of efficient controls and procedures to handle the dangers of cash laundering and terrorist financing.