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.
