Hong Kong regulator fines Guotai Junan unit $3.25 million
23 Jun 2020

Hong Kong’s market watchdog fined a unit of Chinese securities broker Guotai Junan Securities HK$25.2 million ($3.25 million) for “multiple internal control failures” concerning anti-money laundering and other areas.

Guotai Junan Securities (Hong Kong) had failed to detect numerous potentially suspicious transactions or report them appropriately, the Securities and Futures Commission (SFC) said in a statement of disciplinary action published on Monday.

These included transactions with no apparent commercial purpose to third parties sometimes only described as ‘a friend’ of the broker’s client in the documents.

The broker also failed to detect and report potential wash trades, a form of market manipulation, among other regulatory breaches, all of which took place between 2014 and 2016.

Read more Reuters

RiskScreen: Eliminating Financial Crime with Smart Technology

You can claim CPD minutes for this content, by signing up to our CPD Wallet