[Hong Kong] SFC reprimands and fines The Bank of East Asia, Limited $4.2 million for regulatory breaches
SFC Enforcement News, 17 Sep 2020
The Securities and Futures Commission (SFC) has reprimanded The Bank of East Asia, Limited (BEA) and fined it $4.2 million for regulatory breaches related to its failure to segregate client securities. BEA had failed to segregate its client securities from proprietary securities in accounts maintained at two external custodians from 1 April 2003 to 15 December 2016. BEA also did not comply with the regulatory requirements in that licensed corporations are required to safe-keep client securities in a segregated account designated as a trust account or client account.
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[Hong Kong] SFC launches consultation on anti-money laundering guidelines
SFC News, 18 Sep 2020
The SFC today launched a three-month consultation on proposals to amend its anti-money laundering and counter-financing of terrorism (AML/CFT) guidelines. The proposed amendments would facilitate the adoption of a risk-based approach to AML/CFT measures by the securities industry. It addresses some areas for enhancement identified in the latest Mutual Evaluation Report of Hong Kong published by the Financial Action Task Force. The amendments also include additional measures which would help mitigate risks associated with business arrangements such as cross-border correspondent relationships.
Full text: click here; Consultation: click here
[Hong Kong] Amendments to Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Stored Value Facility Licensees)
HKMA Circular, 18 Sep 2020
The Hong Kong Monetary Authority (HKMA) has today published in the Gazette the revised Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Stored Value Facility Licensees) (AML/CFT Guideline for SVF licensees) in accordance with section 54(1A)(b) of the Payment Systems and Stored Value Facilities Ordinance. The amendments to the AML/CFT Guidelines for SVF licensees update and address emerging money laundering and terrorist financing risks identified in some aspects of SVF licensee operations as the sector develops, while also retaining flexibility in customer due diligence requirements consistent with the risk-based approach. The AML/CFT Guideline for SVF licensees will take effect on 2 July 2021.
Full text: click here; Encl: click here
[Hong Kong] Fourth Issue of Regtech Watch
HKMA Circulars, 18 Sep 2020
HKMA published the fourth issue of Regtech Watch, which focuses on technology applications in conduct risk management. It highlights the key challenges to identify and quantify conduct risk given the numerous forms in which misconduct can take and the wide scope of data to be amalgamated and analysed.
Full text: click here; Encl: click here
[Singapore] Singapore insurers extend premium-deferment measures
Business Times, 19 Sep 2020
THE General Insurance Association of Singapore (GIA) and the Life Insurance Association, Singapore (LIA Singapore) on Friday announced the extension of relief measures that will give policyholders more time to pay premiums, while maintaining their coverage. The extensions come amid a soft labour market and weak economy as a result of the Covid-19 pandemic.
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[Hong Kong] SFC suspends Mung Wai Sun for nine months
SFC Enforcement News, 21 Sep 2020
The SFC has suspended Mr Mung Wai Sun, a former licensed representative of Ewarton Securities Limited (Ewarton), for nine months from 18 September 2020 to 17 June 2021. The SFC found that between May 2017 and March 2018, Mung effected transactions in a client’s account on a discretionary basis without obtaining the client’s prior written authorization. Mung also failed to ensure transactions undertaken on behalf of the client were given priority over orders for his own account during the material time.
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[Hong Kong] Hong Kong has effective anti-money laundering supervision, says regulator
Business Times, 21 Sep 2020
Hong Kong's banking regulator said the financial hub was committed to meeting international standards on anti-money laundering, after media reports that some leading banks had moved large sums of allegedly illicit funds over nearly two decades despite red flags about the money's origin.
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[Singapore] Notice 643A Exposures and Credit Facilities to Related Concerns
MAS Regulation, 21 Sep 2020
The Monetary Authority of Singapore (MAS) today issued a revised MAS Notice 643A that will take effect from 1 July 2021. It requires all banks to prepare quarterly statements of their exposures and credit facilities to related concerns using the form and explanatory notes provided by them.
Full text: click here; the Notice: click here
[Singapore] Notice 656 Exposures to Single Counterparty Groups for Banks Incorporated in Singapore
MAS Regulation, 21 Sep 2020
The MAS issued a revised MAS Notice 656 which applies to all locally-incorporated banks. It sets out:
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[Singapore] Notice 639 Exposures to Single Counterparty Groups
MAS Regulation, 21 Sep 2020
The MAS issued a revised MAS Notice 639 which applies to all banks in Singapore. It sets out:
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[Singapore] Notice 652 Net Stable Funding Ratio
MAS Regulation, 21 Sep 2020
The MAS issued a revised MAS Notice 652 which applies to all domestic systemically important banks (D-SIBs) and internationally active banks. It sets out the minimum all currency net stable funding ratio (NSFR) requirements that a bank has to comply with.
Full text: click here
[Singapore] Banks in Singapore handled about US$4.5 billion in suspicious transactions: FinCEN leaks
Business Times, 21 Sep 2020
According to the findings of International Consortium of Investigative Journalists (ICIJ) on leaked files from the Financial Crimes Enforcement Network (FinCEN) in the United States, a number of banks in Singapore handled about US$4.5 billion in suspicious transactions between 2000 and 2017, with DBS Bank, CIMB Bank and Deutsche Bank among those that processed the largest sums of such funds.
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[China] PBOC issues draft guidelines to expedite bond investment
Business Times, 21 Sep 2020
China's central bank on Monday issued draft guidelines aimed at simplifying rules and setting up a uniform set of regulations to help expedite inbound bond investment. PBOC said it would relax repatriation rules and remove restrictions that bar foreign institutional investors from conducting spot foreign exchange transactions through China-based settlement agent.
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[Global] FATF Report on Virtual Assets Red Flag Indicators of Money Laundering and Terrorist Financing
MAS External Publications, 21 Sep 2020
The Financial Action Task Force (FATF) published in September 2020, a FATF report on “Virtual Assets – Red Flag Indicators of Money Laundering and Terrorist Financing” (FATF Report). It is a useful reference to aid financial institutions (FIs) in identifying and reporting potential money laundering and terrorism financing (ML/TF) activities involving virtual assets (VAs), in accordance with their suspicious transaction reporting obligations.
Full text: click here
[China] China fines Luckin Coffee, associated firms combined $12.2m
Straits Times, 22 Sep 2020
China's markets regulator said today it has fined a group of 45 firms including Luckin Coffee a combined 61 million yuan for acts linked to Luckin's falsification of financial records and misleading of the public.
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