Guosen only reported more than 2,200 suspicious third-party deposits – from between November 2014 and December 2015 – to the unit in March 2016 after an SFC review, the commission said.
The commission added that employees had alert Guosen senior management in 2013 about gaps in the company’s internal controls aimed at combating anti-money-laundering activities. The management, however, did not take steps to improve the system.
In determining the fine, the SFC said it took into account that Guosen processed more than 2,200 suspicious third-party deposits totalling more than HK$2.3 billion during a 14-month period while a former senior manager turned a blind eye to the transaction.
The commission did note the company had appointed an external consultant to improve its internal controls system. Guosen, set up in 1994, has no past record of misconduct, the SFC said.
