The Hong Kong Monetary Authority (HKMA) has fined the Hong Kong branch of German universal bank Commerzbank AG HK$6 million (US$764,670).
The fines are for violating four provisions of the country’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), which is incorporated into Chapter 615 of Hong Kong’s laws.
central bank officials on Friday said it imposed a penalty Following a survey and field survey of the system and management of a subsidiary bank in Germany.
The HKMA found that Commerzbank AG, Hong Kong Branch (CBHK) had not established Customer Due Diligence (CDD) before entering into business relationships with 17 customers between April 2012 and June 2016. said it was found to be
Government officials also noted that banks have postponed the implementation of CDD for their customers for a minimum of two months and a maximum of 46 months.
The bank also added that it could not terminate business relationships with 12 customers because they were found unable to comply with the rules, instead extending relationships from six to 46 months.
CBHK also failed during this period to establish and maintain effective procedures to carry out its obligations under AMLO in connection with implementing the CDD and implementing the Customer Beneficial Owner Name Screening Mechanism. did, HKMA explained.
‘A clear deterrent message’
Meanwhile, the HKMA explained that Commerzbank AG’s failure meant that the bank was unable to determine whether the owner of its client’s beneficiary was a politically influential person.
However, the HKMA noted that the German-owned universal bank was taking “prompt corrective action” to address the faults it discovered.
To reach the decision, Apex Bank “needs to send a clear deterrent message to CBHK and industry on the importance of effective controls and procedures to address the risks of money laundering and terrorist financing. ” he said.
The financial authority also said it was taking into account the bank’s cooperation with the investigation and enforcement proceedings and that it had no past record of violating the AMLO.
“As a first line of defense, implementing CDD measures during customer onboarding is fundamental to combating money laundering and terrorist financing, thereby preserving the integrity of Hong Kong’s banking system,” the HKMA said. AMLs.
The Hong Kong Monetary Authority (HKMA) has fined the Hong Kong branch of German universal bank Commerzbank AG HK$6 million (US$764,670).
The fines are for violating four provisions of the country’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), which is incorporated into Chapter 615 of Hong Kong’s laws.
central bank officials on Friday said it imposed a penalty Following a survey and field survey of the system and management of a subsidiary bank in Germany.
The HKMA found that Commerzbank AG, Hong Kong Branch (CBHK) had not established Customer Due Diligence (CDD) before entering into business relationships with 17 customers between April 2012 and June 2016. said it was found to be
Government officials also noted that banks have postponed the implementation of CDD for their customers for a minimum of two months and a maximum of 46 months.
The bank also added that it could not terminate business relationships with 12 customers because they were found unable to comply with the rules, instead extending relationships from six to 46 months.
CBHK also failed during this period to establish and maintain effective procedures to carry out its obligations under AMLO in connection with implementing the CDD and implementing the Customer Beneficial Owner Name Screening Mechanism. did, HKMA explained.
‘A clear deterrent message’
Meanwhile, the HKMA explained that Commerzbank AG’s failure meant that the bank was unable to determine whether the owner of its client’s beneficiary was a politically influential person.
However, the HKMA noted that the German-owned universal bank was taking “prompt corrective action” to address the faults it discovered.
To reach the decision, Apex Bank “needs to send a clear deterrent message to CBHK and industry on the importance of effective controls and procedures to address the risks of money laundering and terrorist financing. ” he said.
The financial regulator also said it was taking into account the bank’s cooperation with the investigation and enforcement proceedings and that it had no previous record of AMLO violations.
“As a first line of defense, implementing CDD measures during customer onboarding is fundamental to combating money laundering and terrorist financing, thereby preserving the integrity of Hong Kong’s banking system,” the HKMA said. AMLs.