By Martin Mou
The Securities and Futures Commission of Hong Kong said it has reprimanded and fined an entity of Guotai Junan Securities Co. for failing to comply with anti-money laundering and other regulatory requirements.
Guotai Junan Securities (Hong Kong) Ltd. has been fined 25.2 million Hong Kong dollars (US$3.25 million) for multiple internal control failures and regulatory breaches regarding these requirements, the SFC said Monday in a statement on its website.
Among the lapses found, Guotai Junan failed to install proper safeguards to mitigate the risks of money laundering and terrorist financing in processing third-party deposits or withdrawals for its clients between March 2014 and March 2015, totaling approximately HK$37.5 billion, the regulator said.
Guotai Junan, a major brokerage and investment bank in China, couldn't immediately be reached for comment.
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