Hong Kong’s Securities and Futures Commission (SFC) announced today that it has reprimanded and imposed a fine of $8 million on Grand International Futures (GIFCL). According to the details shared by the commission, GIFCL failed to comply with anti-money laundering (AML), counter-terrorist financing (CTF) rules, and other regulatory requirements between October 2017 and October 2018.

Moreover, SFC announced the suspension of the license of GIFCL’s responsible officer, Liang Benyou, for a period of 8 months. Benyou will remain suspended between 28 December 2021 and 27 August 2022. The investigation conducted by SFC shows that Grand International Futures did not conduct any due diligence on the customer-supplied systems (CSSs) used by 103 clients for placing orders.

“As a result, GIFCL was not in a position to properly assess and manage the money laundering and terrorist financing (ML/TF) and other risks associated with the use of such CSSs by its clients. In addition, the SFC identified that the amounts of deposits made into four client accounts were incommensurate with their declared financial profiles. Although GIFCL claimed that it was aware of these anomalies, it failed to demonstrate that it had conducted proper inquiries on the deposits and satisfactorily addressed the associated ML/TF risks,” SFC noted.

The Securities and Futures Commission has tightened its grip around illegal financial activities under its jurisdiction during the last few months. In October 2021, the commission imposed a fine worth $5.5 million on Ample Capital Limited.

Compliance

In the case of GIFCL, SFC highlighted the company’s ineffective compliance infrastructure.

“The SFC is of the view that GIFCL’s systems and controls were inadequate and ineffective, and failed to ensure compliance with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, the Guideline on Anti-Money Laundering and Counter-Terrorist Financing (AML Guideline) and the Code of Conduct,” the commission explained.

Hong Kong’s Securities and Futures Commission (SFC) announced today that it has reprimanded and imposed a fine of $8 million on Grand International Futures (GIFCL). According to the details shared by the commission, GIFCL failed to comply with anti-money laundering (AML), counter-terrorist financing (CTF) rules, and other regulatory requirements between October 2017 and October 2018.

Moreover, SFC announced the suspension of the license of GIFCL’s responsible officer, Liang Benyou, for a period of 8 months. Benyou will remain suspended between 28 December 2021 and 27 August 2022. The investigation conducted by SFC shows that Grand International Futures did not conduct any due diligence on the customer-supplied systems (CSSs) used by 103 clients for placing orders.

“As a result, GIFCL was not in a position to properly assess and manage the money laundering and terrorist financing (ML/TF) and other risks associated with the use of such CSSs by its clients. In addition, the SFC identified that the amounts of deposits made into four client accounts were incommensurate with their declared financial profiles. Although GIFCL claimed that it was aware of these anomalies, it failed to demonstrate that it had conducted proper inquiries on the deposits and satisfactorily addressed the associated ML/TF risks,” SFC noted.

The Securities and Futures Commission has tightened its grip around illegal financial activities under its jurisdiction during the last few months. In October 2021, the commission imposed a fine worth $5.5 million on Ample Capital Limited.

Compliance

In the case of GIFCL, SFC highlighted the company’s ineffective compliance infrastructure.

“The SFC is of the view that GIFCL’s systems and controls were inadequate and ineffective, and failed to ensure compliance with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, the Guideline on Anti-Money Laundering and Counter-Terrorist Financing (AML Guideline) and the Code of Conduct,” the commission explained.