Circular to Money Service Operators Anti-Money Laundering
/ Counter-Terrorist Financing Sanctions imposed by the US Government on
Individuals in Mainland China and Hong Kong
Customs and Excise Department, 10 Aug 2020
On 7 August 2020, the United States Government imposed
unilaterally the so-called “sanctions” against individuals in Mainland China
and Hong Kong. This circular clarifies the expectation of the Customs and
Excise Department for money service operators (“MSOs”) to distinguish
unilateral sanctions imposed by foreign governments from targeted financial
sanctions imposed by the United Nations Security Council and implemented under
Hong Kong laws
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National security law: Hong Kong’s financial institutions
gripped by anxiety over United States sanctions
SCMP, 10 Aug 2020
Bank insiders told the Post on Sunday that they were caught
between a rock and a hard place, having to tread an unclear line on US
requirements to avoid doing business with the 11 officials named in the
sanctions list while also ensuring they did not run foul of local law by
complying.
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China's securities regulator issues 3.84b yuan of
penalties in H1
China Daily, 10 Aug 2020
The commission will continue with the zero-tolerance policy
on securities irregularities, and resolutely crack down on financial fraud,
market manipulation and insider trading in a bid to protect the legitimate
rights of investors, the statement said.
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High Court orders illegal pension introducers Avacade,
Alexandra Associates and their directors to pay £10,715,000 restitution to
consumers
FCA, 10 Aug 2020
In a judgment dated 30 June 2020, the Court found that
Avacade’s and AA’s activities were unlawful as they had engaged in the
regulated activities of arranging and advising on investments, made unapproved
financial promotions through their websites, promotional material and in
telephone calls to consumers and made false or misleading statements. The Court
also found that the Lummises and Mr Fox were knowingly concerned in Avacade’s
and AA’s breaches.
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SEC Charges Interactive Brokers With Repeatedly Failing
to File Suspicious Activity Reports
SEC, 10 Aug 2020
The Securities and Exchange Commission today announced that
Interactive Brokers LLC will pay an $11.5 million penalty to settle charges it
repeatedly failed to file Suspicious Activity Reports (SARs) for U.S. microcap
securities trades it executed on behalf of its customers. In parallel actions,
the Financial Industry Regulatory Authority (FINRA) and the Commodity Futures
Trading Commission (CFTC) today announced settlements with Interactive Brokers
related to anti-money laundering failures in which the registered broker-dealer
agreed to pay penalties of $15 million and $11.5 million, respectively, for a
total of $38 million in penalties paid to the three agencies.
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CFTC Orders Interactive Brokers LLC to Pay More Than $12
Million for Anti-Money Laundering and Supervision Violations
CFTC, 10 Aug 2020
The Commodity Futures Trading Commission today filed and
simultaneously settled charges against Interactive Brokers LLC, a registered
futures commission merchant (FCM), for failing to diligently supervise its
officers’, employees’, and agents’ handling of several commodity trading
accounts and failing to adequately implement procedures to detect and report
suspicious transactions as required under federal anti-money laundering (AML)
laws and regulations. Brought in connection with the Division of Enforcement’s
Bank Secrecy Act Task Force, this case marks the first CFTC enforcement action
charging a violation of Regulation 42.2, which requires registrants to comply
with the Bank Secrecy Act.
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