The Hong Kong Monetary Authority recently announced that it has completed the investigation and disciplinary proceedings against EFG Bank AG Hong Kong Branch (EFGHK) under the Anti-Money Laundering and Terrorist Financing Ordinance (AML).。

Regulator fined EFGHK HK $16,000,000 for breaching Anti-Money Laundering Ordinance。

The HKMA conducted on-site inspections and further investigations into the compliance of EFGHK's systems and controls with the Anti-Money Laundering Ordinance and subsequently disciplined them。The investigation found control deficiencies in EFGHK's Customer Due Diligence (CDD) on customers transferred from another financial institution and onboarding CDD and ongoing CDD measures on some other customers between February 21, 2016 and January 16, 2018.。

In addition, between 1 April 2012 and 31 October 2018, EFGHK failed to establish and maintain effective procedures to perform its duties under the Anti-Money Laundering Ordinance in relation to customer due diligence and continuous monitoring of business relationships with customers.。

In deciding on the disposition, the regulator considered a number of factors, including the seriousness of the findings and the need to send a clear deterrent message to EFGHK and the industry about the importance of effective controls and procedures to address the risks of money laundering and terrorist financing.。