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SFC suspends Andy Wong Yeung for 10 months

Issue date: 2024-01-09 16:30:00

The Securities and Futures Commission (SFC) has suspended Mr Andy Wong Yeung, former responsible officer (RO), manager-in-charge (MIC) of key business line and overall management oversight and director of City International Futures (Hong Kong) Limited (CIFHKL), for 10 months from 9 January 2024 to 8 November 2024 (Note 1).

The disciplinary action follows the SFC’s sanctions against CIFHKL for its failures in complying with anti-money laundering and counter-terrorist financing (AML/CFT) and other regulatory requirements between March 2016 and October 2018 (Note 2).

The SFC considers that CIFHKL’s failures were attributable to Wong’s failure to discharge his duties as an RO and a member of the senior management of CIFHKL during the material time.

The SFC’s investigation found that CIFHKL, without conducting adequate due diligence, was unable to properly assess and manage the money laundering and terrorist financing and other risks associated with permitting its clients to use client supplied systems (CSSs) in placing orders.  The SFC also found that CIFHKL failed to conduct proper enquiries on client deposits which were incommensurate with the clients’ declared financial profiles and establish effective ongoing monitoring system to detect and assess suspicious trading patterns in client accounts (Notes 3 & 4).

In deciding the disciplinary sanctions against Wong, the SFC took into account that:

• the failures of him and CIFHKL to diligently monitor clients’ activities and put in place adequate and effective AML/CFT systems and controls are serious because their failings 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; and
• he has an otherwise clean disciplinary record.

End

Notes:

1. Wong was licensed under the Securities and Futures Ordinance to carry on Type 2 (dealing in futures contracts) regulated activity and was accredited to CIFHKL and approved to act as its RO from 25 November 2015 to 2 March 2020.  Wong was also CIFHKL’s MIC of key business line and overall management oversight from 25 November 2015 to 2 March 2020.  Wong is currently not accredited to any licensed corporation. 
2. CIFHKL was reprimanded and fined $100,000 by the SFC for its failures in complying with AML/CFT and other regulatory requirements.  Please refer to the SFC’s press release published on 9 March 2023.
3. CSSs are trading software developed and/or designated by the clients that enable them to conduct electronic trading through the internet, mobile phones and other electronic channels.
4. The CSSs were connected to CIFHKL’s broker supplied system (BSS) through application programming interface (a set of functions that allows applications to access data and interact with external software components or operating systems).  BSSs are trading facilities developed by exchange participants or vendors that enable the exchange participants to provide electronic trading services to investors through the internet, mobile phones and other electronic channels.

News captured as of:2024-01-09 16:30:00

Source: SFC