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Hong Kong: HKMA fines Shanghai Commercial Bank HKD 5 million for AML/CTF violations

The Hong Kong Monetary Authority ('HKMA') announced, on 17 August 2018, that it had fined Shanghai Commercial Bank Limited HKD 5 million (approx. €550,600) for violating requirements relating to customer due diligence and record-keeping under Sections 5(1), 6(1) and 19(3) of Schedule 2 of the Anti-Money Laundering ('AML') and Counter-Terrorist Financing ('CTF') Ordinance (Cap. 615) 2011. The HKMA highlighted that Shanghai Commercial Bank had failed to monitor 33 customer transactions which were considered complex and unusually large, and had not established and maintained measures to continuously monitor business relationships. 

The Assistant Director of the HKMA, Zhu Liqiao, stated, "This case involves a lack of transaction monitoring systems and control measures related to money laundering and terrorist fundraising [...] Risk assessment is not static and unchanged; monitoring customers trading and continuous review are the basic elements of a rational design of a 'risk-based' approach, and banks need to develop and implement sound systems and control measures." 

You can read the press release, only available in Chinese, here.