- 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.
- 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.