The Securities and Futures Commission (SFC) of Hong Kong has imposed a fine of $400,000 on Raymond Leung Tak Shing for failing to comply with AML regulatory requirements. Leung was the chief executive officer, director, compliance officer and money laundering reporting officer of Yardley Securities Limited (YSL).
The SFC’s decision comes after it imposed sanctions against YSL for AML/CFT non-compliance while handling third-party fund transfers in 2016. The SFC found that YSL’s compliance failures were a result of Leung’s inefficient discharge of his duties. Leung approved third-party fund transfers in two client accounts without adequate scrutiny and documentation. This was despite the fact that these transactions had several ML/TF red flag indicators.
Moreover, Leung did not put appropriate ML/TF risk mitigation systems in place at YSL. Furthermore, he failed to ensure that YSL’s staff were sufficiently trained in AML/CFT measures. While deciding upon the penalty, the SFC took into account Leung’s inept handling of many third-party transfers and his integral role in causing YSL’s AML/CFT compliance failures.