SFC suspends Hui Lam Chiu for six months

22 May 2017



The Securities and Futures Commission (SFC) has suspended Mr Hui Lam Chiu, a former responsible officer of Guoyuan Securities Brokerage (Hong Kong) Limited (Guoyuan), for six months from 19 May 2017 to 18 November 2017 (Note 1).

The disciplinary action follows the SFC’s sanction against Guoyuan over its breach of the anti-money laundering guidelines in failing to conduct proper enquiries and scrutiny to mitigate the risks of money laundering and terrorist financing when processing third party fund deposits and withdrawals for clients between September 2010 and July 2012 (Note 2).

Hui was the responsible officer and senior management officer responsible for handling and approving the third party fund transfers at Guoyuan during the relevant period. He was also one of the personnel responsible for ensuring that the third party fund transfers were in compliance with anti-money laundering requirements.

The SFC found that Guoyuan’s breaches were partly attributable to Hui’s failure to discharge his duties as a responsible officer and a member of Guoyuan’s senior management in ensuring all reasonable measures were taken to mitigate the risks of money laundering and terrorist financing. In particular, Hui failed to ensure that:

In deciding the disciplinary sanction, the SFC took into account all relevant circumstances, including Hui’s cooperation with the SFC in resolving the SFC’s concerns and Hui’s otherwise clean disciplinary record.

End

Notes:

  1. Hui was licensed under the Securities and Futures Ordinance to carry on Types 1 (dealing in securities) and 4 (advising on securities) regulated activities and was accredited to Guoyuan between 28 August 2008 and 25 June 2012. Hui is currently accredited to another licensed corporation.
  2. Please refer to the SFC’s press release dated 5 April 2017.
  3. General Principle 7 of the Code of Conduct for Persons Licensed by or Registered with the SFC (Code of Conduct) requires a licensed person to comply with all regulatory requirements applicable to the conduct of his business activities. General Principle 9 and paragraph 14.1 of the Code of Conduct requires a licensed person to manage the risks associated with the firm’s business and properly discharge his responsibility as a responsible officer and a member of senior management of the firm.
  4. Licensed corporations are reminded to refer to the “Circular to Licensed Corporations and Associated Entities – Anti-Money Laundering / Counter Financing of Terrorism (AML/CFT) Compliance with AML/CFT Requirements” issued by the SFC on 26 January 2017 which sets out key areas of concern identified by the SFC in its review of some licensed corporations’ AML/CFT systems.

A copy of the Statement of Disciplinary Action is available on the SFC website



Page last updated : 22 May 2017