Financial News
Written by: Zhang Weilun
2020-06-23 08:30
Date of last update: 2020-06-23 08:30The China Securities Regulatory Commission condemned Guotai Junan Securities (Hong Kong) and was fined at RMB 25.20 million due to the company’s previous violations of various internal control deficiencies and violations, including combating money laundering, handling third-party fund transfers and placing activities, and detecting virtual sales transactions. And delayed reporting.
The SFC investigation found that Guotai Junan did not take reasonable measures to ensure that appropriate safeguards were provided when processing 15,584 transactions or a total of 37.5 billion yuan of third-party deposits or withdrawals for its customers between March 2014 and March 2015. Reduce the risk of money laundering and terrorist financing.
Even though there are early warning signs that some third-party fund transfers are unusual or suspicious, the bank did not adequately monitor the activities of its customers, properly review the relevant fund transfers, and identify suspicious transactions in a timely manner. Group report.
No 590 potential sale transactions have been detected
The China Securities Regulatory Commission also pointed out that Guotai Junan did not take reasonable steps to determine the customer's subscription application and the bank's background and funds for the relevant customers when acting as a global placing agent for a Hong Kong listed company from December 2015 to January 2016. Whether the source's knowledge is consistent, and make a proper inquiry when there are doubtful reasons. The authorities also pointed out that the funds used by the five customers to subscribe for the listed company’s 28.8 million yuan worth of shares were deposited by the same third party in their respective customer accounts, and the relevant amount far exceeded their self-declared net asset value.
The China Securities Regulatory Commission also pointed out that Guotai Junan failed to detect 590 potential virtual sales transactions in time from January 2014 to July 2016, because the company lacked sufficient written transaction monitoring procedures or guidelines, and the emergence of transaction mode monitoring systems. Technical failure.
Although Guotai Junan noticed 210 transactions in July 2016 that were not detected in time due to system failures, the bank did not report the 210 transactions to the SFC until 7 months later.
China Securities Regulatory Commission
