The Securities and Futures Commission (SFC) has fined Xinhu International Futures (Hong Kong) Co., Limited $9 million and suspended its former responsible officer, Mr. Ngai Wai, for nine months due to serious violations of anti-money laundering and counter-terrorist financing regulations between December 2016 and March 2019. The SFC found that Xinhu failed to conduct due diligence on customer systems used by clients, did not adequately monitor suspicious deposits, and lacked effective ongoing monitoring for unusual trading patterns. These deficiencies were attributed to Ngai’s failure to fulfill his management duties. The SFC emphasized the importance of compliance to maintain market integrity and deter similar failures in the future.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR165
