HK regulator cracks whip on lax anti-money laundering controls

Hong Kong

THE Hong Kong securities regulator is investigating licensed brokerages and expects to lodge cases against some for inadequate internal anti-money laundering (AML) controls, it said on Wednesday, amid heightened scrutiny over illicit money flow in the city.

The Securities and Futures Commission (SFC) directed brokerages to immediately tighten their internal controls to comply with anti-money laundering rules that came into force in 2012.

The SFC's on-site inspections and investigations revealed a number of shortcomings including failure to scrutinise cash and thi…