The Securities and Futures Commission (SFC) has fined CSC Futures (HK) Limited $4.95 million for failing to comply with anti-money laundering and counter-terrorism financing regulations between January 2017 and December 2018. The investigation revealed that CSC did not conduct due diligence on customer supplied systems used by clients, which hindered its ability to assess risks of money laundering and terrorist financing. Additionally, CSC failed to monitor deposits that were inconsistent with clients’ financial profiles, leading to inadequate risk management. The SFC emphasized the seriousness of these failures and noted CSC’s cooperation and changes in management as mitigating factors in the decision to impose sanctions.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR163