Due to a lack of compliance with regulatory guidelines and being unable to carry out appropriate customer due diligence, the Honk Kong regulators have fined four banks, including units of industrial and commercial banks of China, $5.7M.
All four banks were penalized with huge AML fines. The Industrial and Commercial Bank of China (ICBC) was reportedly fined HK$20.7 million, while UBS HK fined HK$9 million. Similarly, China Construction Bank (Asia) was fined HK$8.5 million. CTBC Bank Hong Kong was penalized with the equivalent of $6 million.
According to Carmen Chu, Banks should refer to these case examples to review data quality and respective transaction monitoring system effectiveness. The identified deficiencies in the four cases occurred in a period when industry understanding and experience were less mature, and since then, significant progress has been made by the industry, including the banks concerned.