EFG Bank AG, Hong Kong Branch Fined HK$16 Million for AML Violations
The disciplinary action comes after the Hong Kong Monetary Authority [HKMA] conducted an on-site examination and further investigation into EFG BankAG, Hong Kong Branch [EFGHK] compliance with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance [AMLO].
The investigation revealed deficiencies in EFGHK's control procedures related to customer due diligence (CDD) for customers transferred from another financial institution between 21st February 2016 and 16th January 2018.
Additionally, shortcomings were identified in the on-boarding CDD and ongoing CDD measures for specific customers from 1st April 2012 to 31st October 2018.
Furthermore, EFGHK failed to establish effective procedures for fulfilling its obligations under the AMLO regarding CDD and ongoing monitoring of customer relationships from 1st April 2012 to 31st October 2018.
In determining the disciplinary action, the HKMA considered various factors, including the severity of the investigation findings, the need to send a clear message about the significance of robust controls and procedures to combat money laundering and terrorist financing, the remedial actions taken by EFGHK to address the identified deficiencies, and the bank's cooperation throughout the investigation and enforcement proceedings. It should be noted that EFGHK had no previous disciplinary record related to the AMLO.
Ms Carmen Chu, the Executive Director (Enforcement and AML) of the HKMA, emphasized the importance of customer due diligence and continuous monitoring in preventing financial crime and maintaining the integrity of the banking system.
Authorized Institutions (AIs) are considered significant stakeholders in the fight against money laundering and terrorist financing and are expected to adhere to international standards incorporated in the AMLO, as well as relevant guidelines and circulars issued by the HKMA, in their business operations.
Meet the team of industry experts behind ComsureFind out more
Keep up to date with the very latest news from ComsureFind out more
View our latest imagery from our news and workFind out more
Think we can help you and your business? Chat to us todayGet In Touch
As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email firstname.lastname@example.org.