Hong Kong's Securities and Futures Commission (SFC) reprimanded Lion Futures Futures and fined $2.8 million for failing to comply with anti-money laundering and counter-terrorism financing (AML / CFT) and other regulatory requirements between May 2017 and July 2019.。

The SFC's investigation found that Lion did not conduct any due diligence on the Customer Provision System (CSS) used by the five customers during the material time period and was therefore unable to properly assess and manage the money laundering and terrorist financing and other risks associated with customers' use of the Customer Provision System.。

In addition, the SFC found that Lion failed to detect 1,098 self-matching transactions in five customer accounts due to its failure to establish an effective continuous monitoring system to detect suspicious trading patterns in customer accounts.。

In the opinion of the regulator, Lion's systems and controls are inadequate and ineffective and fail to ensure compliance with the Anti-Money Laundering and Anti-Terrorist Financing Ordinance, the Anti-Money Laundering and Anti-Terrorist Financing Guidelines (AML Guidelines) and the Code of Conduct.。

In deciding on the disciplinary action against Lion, the SFC has taken into account the seriousness of its failure to make every effort to monitor the activities of its clients and the failure to establish adequate and effective systems and monitoring measures to prevent money laundering and combat the financing of terrorism, which could undermine public confidence in the market and undermine the integrity of the market.。

It is reported that the relevant agencies have taken remedial measures to strengthen internal systems and controls to continuously monitor and identify suspicious transactions.。The regulator pointed to the need to send a strong deterrent message to the market that such dereliction of duty is unacceptable.。LFL works with SFC to address SFC concerns。