HK SFC Broker HK$15mn for AML

On Feb. 18, HK SFC fined Guosen securities $15mn for AML breach.

  • Guosen Securities (HK) broker failed to comply with AML/CFT rules, in handling
    third party fund deposits, processed 10,000 third-party deposits for $5bn total.


  • Clients received third-party deposits that were unequal to their financial profiles.
  • Third-party deposits withdrawn soon after funds receipt, without use for trading.
  • Some third parties with no client relationship made deposits on purported behalf.
  • No system to identify and monitor third-party deposits into client bank accounts.
  • Did not verify identity of depositors, relationship with clients, reasons for deposit.


  • Employees raised some of the internal control deficiencies to senior management
    who chose not to take steps, to ensure AML/CFT internal controls were effective.
  • Firm did not submit suspicious transaction reports to the JFIU in a timely manner.