On Aug. 31, HK SFC issued circular on AML inspections findings.
- Found AML deficiencies in inspections of licensed corporations (LCs) in last year.
- In meeting the expected regulatory standards, for AML/CFT measures, controls.
Scope of Reviews
- This followed thematic inspection focusing on 13 LCs’ measures and controls for
- identifying and mitigating money laundering and terrorist financing (ML/TF) risk.
- Also reviewed the AML/CFT policies, procedures and controls of around 270 LCs.
Findings
- SFC reminded LCs and associated entities (AEs) to take all reasonable measures
to mitigate ML/TF risks and put in place proper safeguards to ensure compliance. - Firms should critically review internal AML/CFT policies, procedures and controls.
- Where needed, take immediate action to rectify any deficiencies or inadequacies.
- Particularly deficiency of institutional risk assessment, customer risk assessment,
Initial and ongoing CDD, Sanctions screening, suspicious transaction monitoring. - Will continue to monitor LCs’ and AEs’ compliance with their AML/CFT obligations.
