Core Viewpoint - The Hong Kong Monetary Authority (HKMA) has completed an investigation and disciplinary action against San San Financial Services Limited for violations of the Payment Systems and Stored Value Facilities Ordinance, resulting in a fine of HKD 1.6 million [1] Group 1: Investigation Findings - San San Financial failed to establish adequate control systems to comply with anti-money laundering and counter-terrorist financing guidelines from December 1, 2019, to August 31, 2023 [1] - The violations included insufficient customer due diligence measures, lack of understanding of the purpose and expected nature of business relationships, and failure to ensure proper identity verification by outsourced partners [2] Group 2: Disciplinary Action Considerations - The severity of the investigation findings and San San Financial's previous disciplinary records were taken into account [3] - The need to convey a clear deterrent message to the industry regarding the importance of effective control measures against money laundering and terrorist financing risks was emphasized [3] - San San Financial has taken remedial actions and strengthened its control systems after being informed of the deficiencies by the HKMA [3]

Core Points - The company, Minzhong Futures Limited (now known as Yucheng Global Futures Limited), was fined HKD 3.4 million by the Hong Kong Securities and Futures Commission (SFC) for failing to comply with anti-money laundering and counter-terrorist financing regulations from June 2017 to December 2018 [1][2] - The SFC temporarily suspended the license of Li Zhen, the company's managing director and key function supervisor, for four months due to his failure to fulfill responsibilities related to the company's compliance shortcomings [1] - The investigation revealed that Minzhong did not conduct due diligence on a self-established system used by 89 clients for trading instructions, leading to inadequate assessment and management of money laundering and terrorist financing risks [1] - The SFC found discrepancies between the financial status declared by six clients and the funds deposited in their accounts, indicating a lack of effective monitoring systems to detect and assess suspicious deposits [1] - Additionally, Minzhong failed to establish an effective ongoing monitoring system to detect suspicious trading patterns, as evidenced by frequent and large transactions from the same clients [1][2]

Core Viewpoint - The Hong Kong Securities and Futures Commission (SFC) has imposed a six-month ban on Wong Lai-suen, a former executive director of Ming Tai Fu Securities Limited, due to her failure to manage credit risk and identify suspicious trading patterns [1][2][3] Group 1: Regulatory Findings - The SFC's investigation revealed that in January 2021, three cash clients opened accounts at Ming Tai Fu and deposited only HKD 10,000 each, yet the firm granted them trading limits ranging from HKD 4 million to HKD 5 million without proper applications [1] - Following the approval of these trading limits, the clients engaged in transactions that were inconsistent with their financial status, which should have raised suspicions of potential market misconduct and money laundering [1] - Ming Tai Fu failed to identify these transactions as suspicious and did not report them to the Joint Financial Intelligence Unit or the SFC, indicating a lack of effective policies and procedures for managing credit risk and monitoring suspicious activities [1] Group 2: Disciplinary Actions - The SFC deemed the deficiencies at Ming Tai Fu to be serious, as they could undermine public confidence in the market and compromise its integrity [3] - The decision to discipline Wong was influenced by her acknowledgment of shortcomings in assessing suspicious transactions during the SFC's investigation [3] - Wong had no prior record of disciplinary actions against her, which was considered in the SFC's decision [3]