Hong Kong Sees Spike in AML Violations

July 1st, 2016

Hong Kong Sees Spike in AML Violations

Recurring Theme:  Market Transparency

Summary Analysis: 

Last week, Reuters reported an increase in violations of anti-money laundering (AML) rules in Hong Kong. The country’s financial regulator, the Securities and Futures Commission (SFC), reported a year-over-year increase of more than 90 percent, from 117 violations in the fiscal year ending on March 31, 2015, to 117 violations last year.

The AML violations were highlighted in the SFC’s Annual Report for 2015/2016. In response to a spike in misconduct in the financial services industry, the regulator has boosted cooperation with China’s Securities Regulatory Commission and increased supervisory efforts. Last year, the SFC assessed more than $87 million in fines, made nearly 8,000 requests for trading and account record and conducted more than 300 risk-based on-site inspections. Furthermore, the number of investigations in corporate disclosure, misgovernance, insider dealing, intermediary misconduct, market manipulation and unlicensed activities all saw year-over-year increases.

Resources:

SFC Press Release:

http://www.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=16PR60

SFC Annual Report:

http://www.sfc.hk/web/annualreport2015-16/en/

Press:

http://www.reuters.com/article/hongkong-regulator-moneylaundering-idUSL4N19E29G