Hong Kong’s banking regulator fined China CITIC Bank International HKD4m (USD510,000) for breaching anti-money laundering regulations, the Hong Kong Monetary Authority (HKMA) announced. Between November 2015 and July 2018, CITIC failed to generate system alerts for suspicious transactions due to incorrect implementation of detection rules in its automated monitoring system. The bank also did not adequately review the background and purpose of certain customer transactions.
Raymond Chan, HKMA’s executive director of enforcement and AML, emphasised the importance of maintaining robust transaction monitoring systems to combat financial crime. The HKMA’s investigation underscores the need for banks to ensure their systems are properly configured and functioning effectively to meet compliance standards.