G.N. 3115 / 2023

In view of the coming into force of the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 on June 1, 2023, the Securities and Futures Commission of Hong Kong, SFC, has published a new General Notice (G.N. 3115/2023) in which it officially gazettes the new „SFC Disciplinary Fining Guidelines“ to be effective June 1, 2023 as well. The guidelines stipulate the factors the SFC will consider when evaluating a breach under new Section 5B of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance and assessing possible fines. Such factors include, among others:
– the motivation of a breach (intentional or unintentional);
– the consequences of a breach as to the reputation of Hong Kong’s financial market;
– the monetary damage caused by a breach particularly to other parties;
– the benefits a firm has received from committing a breach;
– the self-disclosure of a breach (if so);
– the length of time a violation persisted; or
– the degree of cooperation of the firm to resolve the issue.