Hong Kong’s markets watchdog said on Monday it had fined a local securities unit of one of China’s largest banks, Bank of Communications (3328.HK) (601328.SS), HK$19.6 million ($2.53 million) for a range of regulatory breaches.
BOCOM International Securities Limited broke anti-money laundering rules by not identifying deposits made by third parties, the Securities and Futures Commission (SFC) said.
BOCOM International Securities is a subsidiary of Hong Kong-based BOCOM International Holdings (3329.HK), which in turn is a unit of Bank of Communications.
The SFC said it also found “extensive deficiencies” in BOCOM International Securities’ margin lending and margin call policy between December 2012 and November 2016, and that it breached other rules including those concerning authorisation of transactions and client complaints.
“BOCOM International Securities … has taken and will take a series of optimisation measures to address the deficiency pointed out by Hong Kong’s SFC, aiming to improve management and control mechanism and ensure compliance,” a spokeswoman for BOCOM International said in an emailed statement.