Hong Kong – SFC Fined Southwest Securities

On 18 May 2020, HK SFC fined Southwest Securities for AML breaches.

  • HK SFC has reprimanded and fined Southwest Securities (HK) Brokerage Limited HKD5mn for failures in complying with AML/CFT regulatory requirements in 2016.
  • Breaches
  • Southwest had failed to implement adequate policies and procedures to mitigate risk of money laundering and terrorist financing associated with third party deposits.
  • Also failed to establish proper internal systems and controls to monitor its clients' activities, and detect and report suspicious transactions to HK FIU in a timely manner.
  • Between Jan. and Dec. 2016, they failed to identify 89% (164 out of 184) of third party deposits of HKD110.1mn for clients due to lack of systems and procedures.
  • Did not critically evaluate these deposits nor document the enquiries; staff also did not have clear understanding of responsibilities in monitoring of suspicious transactions.