Lawrence Jengar
30 Aug 2024 19:43
The Hong Kong Monetary Authority has fined WeChat Pay Hong Kong Limited HK$875,000 for breaching anti-money laundering regulations.
The Hong Kong Monetary Authority (HKMA) has announced disciplinary action against WeChat Pay Hong Kong Limited (WPHK) for breaching the Payment Systems and Stored Value Facilities Ordinance (PSSVFO). According to the HKMA, WPHK will have to pay a monetary penalty of HK$875,000 for failing to meet regulatory standards.
Details of the violation
The HKMA’s investigation covered the period from 25 August 2016 to 24 October 2021 and found that WPHK did not have adequate systems in place to comply with anti-money laundering (AML) and counter-terrorism financing (CFT) guidelines. The identified deficiencies were primarily in two areas:
- We conduct Customer Due Diligence (CDD) reviews when trigger events occur.
- Apply enhanced due diligence measures in high-risk situations to mitigate money laundering and terrorist financing risks.
Factors considered in disciplinary action
The HKMA took into account several factors when deciding on disciplinary action.
- The severity of the findings.
- The need to send a clear and compelling message to the industry about the importance of effective AML and CFT controls.
- Corrective action taken by WPHK to address deficiencies.
- WPHK reported the matter directly to the HKMA.
- WPHK has no prior disciplinary record and has cooperated in resolving any issues that have been identified.
Official statement
HKMA Enforcement Director (Enforcement and AML) Raymond Chan stressed the importance of SVF licensees applying enhanced due diligence measures in potentially high-risk situations. “These enhanced due diligence measures must be effective in ensuring that the relevant money laundering and terrorist financing risks are appropriately managed,” Chan said.
For further details, please refer to the official disciplinary action taken by the Hong Kong Monetary Authority.
Industrial significance
This disciplinary action serves as an important reminder to all Hong Kong stored value facility (SVF) licensees of the critical importance of maintaining strong AML and CFT controls. The HKMA’s decision underscores the regulator’s commitment to ensuring the integrity of the financial system and sends a clear message about the consequences of non-compliance.
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