Page 35 - 期货和衍生品行业监管动态（2023年2月）

期货和衍生品行业监管动态

and Sanctions Its Responsible Officers for Regulatory Breaches (2023/2/7)

The Securities and Futures Commission (SFC) has reprimanded and fined Jinrui

Futures (Hong Kong) Limited (Jinrui Futures) $4.8 million for failures in complying

with anti-money laundering and counter-terrorist financing (AML/CFT) and other

regulatory requirements between April 2015 and June 2018 (Note 1).

The SFC has also banned Shen Chun, a former executive director and

responsible officer of Jinrui Futures, from re-entering the industry for six months

from 6 February 2023 to 5 August 2023 (Note 2).

Jiang Xiaoqing, another responsible officer of Jinrui Futures, has been suspended

for five months from 6 February 2023 to 5 July 2023 (Note 3).

The SFC’s investigation found that Jinrui Futures, which permitted 258 clients to

use customer supplied systems (CSSs) for placing orders during the material time, had
failed to conduct adequate due diligence on the CSSs. As a result, Jinrui Futures was

not in a position to properly assess and manage the money laundering and terrorist

financing and other risks associated with the use of such CSSs by its clients (Notes 4

& 5).

In addition, the SFC identified that some of the deposits made into four clients’

accounts were unusual and/or suspicious and inconsistent with the clients’ declared

net worth. Although Jinrui Futures performed certain enquiries on these clients, they

were inadequate and did not satisfactorily explain the suspicious transactions.

The SFC further found that Jinrui Futures failed to comply with its account

opening procedures which require its staff to conduct AML investigations on its

clients before account opening, including identifying whether the clients were

politically exposed persons or under existing terrorist and sanction lists.

The SFC is of the view that Jinrui Futures’ conduct was in breach of the

Anti-Money Laundering and Counter-Terrorist Financing Ordinance, the Guideline

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