Hong Kong Monetary Authority Fines China CITIC Bank $514,000 for Money Laundering Failure, Failed to Implement Correctly Detection & Core Model Rules Resulting in Failure to Generate Suspicious Transactions System Alerts from 2015 to 2018 and Failed to Examine Background & Purpose of Transactions
9th December 2024 | Hong Kong
The Hong Kong Monetary Authority (HKMA) has fined China CITIC Bank $514,000 (HKD 4 million) for money laundering failure, failing to implement correctly detection & core model rules resulting in failure to generate suspicious transactions system alerts from 2015 to 2018 and failing to examine background & purpose of transactions. HKMA (6/12/24): “The Hong Kong Monetary Authority (HKMA) announced today (6 December) that it had completed an investigation and disciplinary proceedings for China CITIC Bank International Limited (CITIC) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615 of the Laws of Hong Kong) (AMLO) (Note 1). The Monetary Authority (MA) has imposed a pecuniary penalty of HK$4,000,000 against CITIC for contraventions of the AMLO. The disciplinary action (Note 2) follows an investigation by the HKMA on CITIC’s systems and controls for compliance with the AMLO. The deficiencies identified in the investigation were related to the incorrect implementation of detection rules and core model rules in its automated transaction monitoring system, resulting in failure to generate system alerts on suspicious transactions during the period between November 2015 and July 2018. CITIC also failed to examine the background and purpose of the transactions of some customers and to set out its findings in writing during this period. In deciding the disciplinary action, the MA has taken into account all relevant circumstances and factors, including the following: (a) the seriousness of the investigation findings; (b) the need to send a clear deterrent message to CITIC and the industry about the importance of having effective controls and procedures to address money laundering and terrorist financing risks; (c) CITIC has taken remedial actions to address the identified deficiencies; and (d) CITIC has no previous disciplinary record in relation to the AMLO and cooperated with the HKMA during the investigation and enforcement proceedings.”
“ Hong Kong Monetary Authority Fines China CITIC Bank $514,000 for Money Laundering Failure, Failed to Implement Correctly Detection & Core Model Rules Resulting in Failure to Generate Suspicious Transactions System Alerts from 2015 to 2018 and Failed to Examine Background & Purpose of Transactions “
Hong Kong Monetary Authority Fines China CITIC Bank $514,000 for Money Laundering Failure, Failed to Implement Correctly Detection & Core Model Rules Resulting in Failure to Generate Suspicious Transactions System Alerts from 2015 to 2018 and Failed to Examine Background & Purpose of Transactions
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2024 Investment Day
- March 2024 - Hong Kong
- March 2024 - Singapore
- July 2024 - Hong Kong
- July 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Oct 2024 - Hong Kong
- Nov 2024 - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
