HKMA JPMorgan AML HK$12.5mn

On Dec. 28, HKMA fined JPMorgan HK$12.5mn for AML breach.

  • JPMorgan Chase Bank, NA, Hong Kong Branch settlement for AML contraventions.
  • Per S. 19(2) and 19(3) of schedule 2 to AMLO (Chapter 615) of law of Hong Kong.

Alleged Violations

  • Bank contravened HK laws regarding AML and counter-terrorist financing control.
  • Failed to establish procedures on the identification and handling of wire transfers.
  • Wire transfers lacked originator’s name in the related message or payment form.
  • Procedures did not comply with purpose of carrying out its duty concerning CDD.
  • Did not carry out requirement before the establishment of business relationships.
  • Nor obtained the certificate of incumbency to verify the existence of their clients.
  • No periodic review of customer's CDD data if done for other client in same group.
  • 259 of 495 high risk customers were not subjected to annual review of risk level.


  • HKMA has ordered JPMorgan Hong Kong to pay HK$12.5mn penalty for violation.
  • Bank will submit to HKMA, a report prepared by an independent external advisor.
  • Report to assess whether remedial measures are enough to address the breaches.