Hong Kong’s Securities and Futures Commission (SFC) has reprimanded and fined City International Futures (Hong Kong) Limited (CIFHKL), now known as VERCAP Financial Services Limited, $100,000 for failures in complying with anti-money laundering and counter-terrorist financing (AML/CFT) and other regulatory requirements. The regulatory breaches occurred between March 2016 and October 2018.
The SFC’s investigation found that CIFHKL did not conduct any due diligence on the customer supplied systems (CSSs) used by 16 clients for placing orders. As a result, CIFHKL was not in a position to properly assess and manage the money laundering and terrorist financing (ML/TF) and other risks associated with the use of such CSSs by its clients.
In addition, the SFC identified that the amounts of deposits made into two client accounts were incommensurate with their declared financial…
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