The Hong Kong Monetary Authority (HKMA) has announced the completion of an investigation and disciplinary proceedings against EFG Bank AG, Hong Kong Branch (EFGHK) for violating the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). EFGHK has been fined HK$16,000,000 as a result. The investigation revealed shortcomings in EFGHK’s compliance with customer due diligence requirements, specifically regarding customers transferred from another financial institution between February 2016 and January 2018, as well as onboarding and ongoing due diligence measures for other customers between April 2012 and October 2018. Additionally, EFGHK failed to establish effective procedures for fulfilling its obligations under the AMLO during this period. The disciplinary action considers the seriousness of the findings, the need for strong deterrence, EFGHK’s remedial efforts, and its cooperation during the investigation. Ms Carmen Chu, Executive Director of Enforcement and AML at the HKMA, stressed the importance of Authorized Institutions (AIs) adhering to international standards and guidelines to combat financial crime effectively.
Resource: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/08/20230815-6/