Guotai Junan was fined HK $25.2 million for several violations in Hong Kong

category:Finance
 Guotai Junan was fined HK $25.2 million for several violations in Hong Kong


It is worth noting that five customers used to subscribe for the listed companys shares worth 28.8 million yuan, which were deposited into their respective customer accounts by the same third party. The amount involved is far more than their self declared net worth. Guotai Junan not only failed to take reasonable steps to verify the ultimate beneficial owner of such customer accounts and their sources of funds, but also failed to make appropriate inquiries to determine whether the relevant customers are independent of the listed company.

On the issue of detection of virtual sales and delayed reporting, the Hong Kong Securities Regulatory Commission pointed out that although the failure of the trading mode monitoring system was mainly attributed to the third-party suppliers, Guotai Junan (Hong Kong) failed to detect virtual sales for more than two years, during which about 590 potential virtual sales were not detected. In the past disciplinary cases, the SFC has sent a clear message that the licensed corporation shall report any misconduct immediately.

According to the SFC, Guotai Junan (Hong Kong) has taken remedial measures to correct the problems related to its transaction monitoring system and procedures, and has taken the initiative to strengthen its policies and procedures in the fight against money laundering and terrorist fund-raising, and has committed to provide the SFC with a report prepared by an independent review body within 12 months to confirm all identified problems The concerns have been properly corrected. Wei Jianxin, executive director of the law enforcement department of the Hong Kong Securities Regulatory Commission, said that the disciplinary action against Guotai Junan (Hong Kong) should alert the licensed companies, understand the importance of establishing adequate and effective safeguard measures, so as to reduce the real risk that they will become a tool to help long-term illegal activities such as money laundering in the face of potential suspicious transactions. According to the public information, Guotai Junan (Hong Kong) is one of the main subsidiaries of Guotai Junan financial holding (Guotai Junan international business platform) incorporated into the scope of merger, with a shareholding ratio of 68.48%. Guotai Junan (Hong Kong) is registered in Hong Kong, China, with a paid in capital of HK $7.5 billion. Its business nature is securities brokerage, etc. Extended reading and development and Reform Commission issued the central budget of 3.5 billion yuan in two batches to support Hainan free trade port national network information office to interview Zhang Bincheng, Secretary of the Party committee and chairman of Shaanxi Nuclear Industry Group Co., Ltd. in 10 online live platforms such as Huya and douyu. Source: Securities Times author: Yan Jingying editor in charge: Wang Xiaowu_ NF

According to the SFC, Guotai Junan (Hong Kong) has taken remedial measures to correct the problems related to its transaction monitoring system and procedures, and has taken the initiative to strengthen its policies and procedures in the fight against money laundering and terrorist fund-raising, and has committed to provide the SFC with a report prepared by an independent review body within 12 months to confirm all identified problems The concerns have been properly corrected.

Wei Jianxin, executive director of the law enforcement department of the Hong Kong Securities Regulatory Commission, said that the disciplinary action against Guotai Junan (Hong Kong) should alert the licensed companies, understand the importance of establishing adequate and effective safeguard measures, so as to reduce the real risk that they will become a tool to help long-term illegal activities such as money laundering in the face of potential suspicious transactions.

Guotai Junan (Hong Kong) is registered in Hong Kong, China, with a paid in capital of HK $7.5 billion. Its business nature is securities brokerage, etc.