Hong Kong SFC Fines Brokerage Jinrui Futures $611,000 for Money Laundering Failures for 258 Clients, Banned Executive Director 6 Months & Responsible
Hong Kong, Asia's leading financial centre Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Caproasia - Learn more Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2023 Investment Day | 2023 Family Office Summits | Family Office Circle This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion. 
Hong Kong SFC Fines Brokerage Jinrui Futures $611,000 for Money Laundering Failures for 258 Clients, Banned Executive Director 6 Months & Responsible Officer 5 Months 8th February 2023 | Hong Kong
Hong Kong Securities & Futures Commission (SFC) has fined brokerage Jinrui Futures $611,000 (HKD $4.8 million) for money laundering failures for 258 clients, and banned former Executive Director Shen Chun for 6 months and Responsible Officer Jiang Xiaoqing for 5 months. Hong Kong SFC: “The SFC’s investigation found that Jinrui Futures, which permitted 258 clients to use customer supplied systems (CSSs) for placing orders during the material time, had failed to conduct adequate due diligence on the CSSs. As a result, Jinrui Futures was not in a position to properly assess and manage the money laundering and terrorist financing and other risks associated with the use of such CSSs by its clients. In addition, the SFC identified that some of the deposits made into four clients’ accounts were unusual and/or suspicious and inconsistent with the clients’ declared net worth. Although Jinrui Futures performed certain enquiries on these clients, they were inadequate and did not satisfactorily explain the suspicious transactions. The SFC further found that Jinrui Futures failed to comply with its account opening procedures which require its staff to conduct AML investigations on its clients before account opening, including identifying whether the clients were politically exposed persons or under existing terrorist and sanction lists.” See full statement below | View HK SFC Disciplinary Action here
“ Hong Kong SFC Fines Brokerage Jinrui Futures $611,000 for Money Laundering Failures for 258 Clients, Banned Executive Director 6 Months & Responsible Officer 5 Months “
- Article continues below - Web links may be disabled on mobile for security. Please click on desktop. Quick Links, Ads & Announcements Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2023 Investment Day | 2023 Family Office Summits | Family Office Circle New to Caproasia Learn More | Sign Up | Subscribe | Register Events The 2023 Investment Day | HK & SG Where do you invest $250k, $1 million, $10 million, $100 million or $1 billion? Can you generate IRR of 10% / 15% / 20% or more? Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Taking place on 28th March 2023 in Hong Kong, 4th April 2023 in Singapore, and Virtual Investment Day in April 2023. Visit | Register here
JINRUI FUTURES (H.K.) CO., LTD., a wholly-owned affiliated company of JINRUI FUTURES, which is the holding subsidiary company of JIANGXI COOPER CORPORATION, has been approved by SFC in 2007 to run the businesses covered by CME Group and major oversea commodity exchanges and the central code is AOY332.The businesses we operate include futures & options trading and other derivatives trading.
Hong Kong SFC Statement
Hong Kong, Asia’s leading financial centre SFC reprimands and fines Jinrui Futures (Hong Kong) Limited $4.8 million and sanctions its responsible officers for regulatory breaches
7th February 2023 – The Securities and Futures Commission (SFC) has reprimanded and fined Jinrui Futures (Hong Kong) Limited (Jinrui Futures) $4.8 million for failures in complying with anti-money laundering and counter-terrorist financing (AML/CFT) and other regulatory requirements between April 2015 and June 2018 (Note 1).
The SFC has also banned Shen Chun, a former executive director and responsible officer of Jinrui Futures, from re-entering the industry for six months from 6 February 2023 to 5 August 2023 (Note 2).
Jiang Xiaoqing, another responsible officer of Jinrui Futures, has been suspended for five months from 6 February 2023 to 5 July 2023 (Note 3).
The SFC’s investigation found that Jinrui Futures, which permitted 258 clients to use customer supplied systems (CSSs) for placing orders during the material time, had failed to conduct adequate due diligence on the CSSs. As a result, Jinrui Futures was not in a position to properly assess and manage the money laundering and terrorist financing and other risks associated with the use of such CSSs by its clients (Notes 4 & 5).
In addition, the SFC identified that some of the deposits made into four clients’ accounts were unusual and/or suspicious and inconsistent with the clients’ declared net worth. Although Jinrui Futures performed certain enquiries on these clients, they were inadequate and did not satisfactorily explain the suspicious transactions.
The SFC further found that Jinrui Futures failed to comply with its account opening procedures which require its staff to conduct AML investigations on its clients before account opening, including identifying whether the clients were politically exposed persons or under existing terrorist and sanction lists.
The SFC is of the view that Jinrui Futures’ conduct was in breach of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, the Guideline on Anti-Money Laundering and Counter-Terrorist Financing and the Code of Conduct (Notes 6 & 7).
The SFC considers that Jinrui Futures’ failures were partly attributable to the failures of Shen and Jiang in discharging their duties as the firm’s responsible officers and senior management.
In deciding the disciplinary sanctions against Jinrui Futures, Shen and Jiang, the SFC took into account that:
- Jinrui Futures’ failures to diligently monitor its clients’ activities and put in place adequate and effective AML/CFT systems and controls are serious as they could undermine public confidence in, and damage the integrity of, the market;
- a strong deterrent message needs to be sent to the market that such failures are not acceptable;
- Jinrui Futures, Shen and Jiang cooperated with the SFC in resolving the SFC’s concerns; and
- Jinrui Futures, Shen and Jiang have otherwise clean disciplinary records with the SFC.
Notes:
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
- Professional Investor
- Family Office
- HNW Partnership
- Family Office Circle
- Family Office Networking
- Family Office Roundtable
- The Family Office Summit
- 28th March 2023 - Hong Kong
- 4th April 2023 - Singapore
- April 2023 - Virtual
- Sept 2023 - Hong Kong
- Oct 2023 - Singapore
- Oct 2023 - Hong Kong
- Visit: The Investment Day | Register: Click here
- The Investment Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
You are:
Professional InvestorInstitutional InvestorFamily OfficeAdvisorFinancial ProfessionalExecutiveOthers
Select:
Mailing ListFree TrialSubscription YearlySubscription MonthlyMembershipEvents
Interests / Events / Summits / Roundtables / Networking:
Professional InvestorPrivate WealthFamily OfficePrivate BankingWealth ManagementInvestmentsAlternativesPrivate MarketsCapital MarketsESG & SICEO & EntrepreneursTax, Legal & RisksHNW & UHNWs Insights
Your Name*
Company*
Job Title*
Email 1 (Work / Personal)*
Email 2 (Work / Personal)
Contact No.
Country
Your Message (leave blank if none)
Owl Media Group takes pride in providing social-first platforms which equally benefit and facilitate engagement between businesses and consumers and creating much-needed balance to make conducting business, easier, safer, faster and better. The vision behind every platform in the Owl Media suite is to make lives better and foster a healthy environment in which parties can conduct business efficiently. Facilitating free and fair business relationships is crucial for any thriving economy and Owl Media bridges the gap and open doors for transparent and successful transacting. No advertising funds influence the functionality of our media platforms because we value authenticity and never compromise on quality no matter how lucrative the offers from advertisers may seem.