ARTICLE
9 December 2021

Four Banks Have Had Fines Imposed In Hong Kong For Money Laundering Failings

RR
Rahman Ravelli Solicitors
Contributor

Rahman Ravelli is known for its sophisticated, bespoke and robust representation of corporates, senior business executives and professionals in national and international matters.
It is one of the fastest-growing and most highly-regarded, market-leading legal practices in its field. This is due to its achievements in criminal and regulatory investigations and large-scale commercial disputes involving corporate wrongdoing and multi-jurisdictional enforcement, and its asset recovery, internal investigations and compliance expertise.
The firm’s global reach, experienced litigators and network of trusted partner firms ensure it can address legal matters for clients anywhere in the world. It combines astute business intelligence and shrewd legal expertise with proactive, creative strategies to secure the best possible outcome for all its clients.
Rahman Ravelli’s achievements in certain cases have even helped shape the law. It is regularly engaged by other law firms to provide independent advice.

Syed Rahman of financial crime specialists Rahman Ravelli emphasises that the problem is far from unique to Hong Kong.
Hong Kong Criminal Law
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Syed Rahman of financial crime specialists Rahman Ravelli emphasises that the problem is far from unique to Hong Kong.

The Hong Kong Monetary Authority (HKMA) has announced it has issued fines totalling 44.2 million Hong Kong dollars ($5.7 million) to four banks for historic anti-money laundering breaches.

Swiss bank UBS, the Industrial and Commercial Bank of China (ICBC), China Construction Bank and the Taiwanese bank CTBC were found to have not met their obligations to monitor ongoing customer relationships and maintain effective compliance procedures under Hong Kong's Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), which came into force in 2012. The banks' failings were said to have happened between 2012 and 2016.

HKMA enforcement director Carmen Shiu said: "The identified deficiencies in the four cases occurred in a period following the commencement of the AMLO when industry understanding and experience were less mature.

"Since then, significant progress has been made by the industry, including the banks concerned, in enhancing financial crime compliance capabilities."

ICBC received the biggest fine. It was ordered to pay the equivalent of $2.7 million for breaching nine provisions of the anti-money laundering regulations, having failed to carry out proper screening of politically exposed persons or gather adequate information regarding more than a thousand cross-border transactions. UBS paid $1.2 million - the second-highest fine - for violating four parts of the regulations, including failing to quickly close accounts of high-risk customers.

While the fines indicate that Hong Kong is taking a serious approach to money laundering, this is just the latest instance of banks being held to account for such failings around the world. Last year saw a total of $2.2 billion in fines issued worldwide for money laundering, with Australia and Sweden seeing the highest penalties imposed.

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ARTICLE
9 December 2021

Four Banks Have Had Fines Imposed In Hong Kong For Money Laundering Failings

Hong Kong Criminal Law
Contributor

Rahman Ravelli is known for its sophisticated, bespoke and robust representation of corporates, senior business executives and professionals in national and international matters.
It is one of the fastest-growing and most highly-regarded, market-leading legal practices in its field. This is due to its achievements in criminal and regulatory investigations and large-scale commercial disputes involving corporate wrongdoing and multi-jurisdictional enforcement, and its asset recovery, internal investigations and compliance expertise.
The firm’s global reach, experienced litigators and network of trusted partner firms ensure it can address legal matters for clients anywhere in the world. It combines astute business intelligence and shrewd legal expertise with proactive, creative strategies to secure the best possible outcome for all its clients.
Rahman Ravelli’s achievements in certain cases have even helped shape the law. It is regularly engaged by other law firms to provide independent advice.

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