The Securities and Futures Commission (SFC) has fined Zheshang International Financial Holdings Co., Limited $2.66 million for failing to comply with anti-money laundering and counter-terrorism financing regulations from June 2016 to October 2018. The investigation revealed that Zheshang lacked an effective monitoring system to detect suspicious trading, resulting in the failure to identify 23,370 self-matched trades. Additionally, discrepancies were found between clients’ deposit amounts and their financial profiles, with inadequate record-keeping of inquiries made. The SFC deemed these lapses serious, emphasizing the need for strong deterrents in the market, although it acknowledged Zheshang’s cooperation in addressing the issues.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR169
