The Hong Kong Securities and Futures Commission (SFC) has strengthened measures to address risks of document forgery and money laundering and has raised account opening standards.

CoinFeed reported on May 22 that the Hong Kong Securities and Futures Commission (SFC) issued a circular today outlining monitoring measures to be implemented in account opening and client relationship maintenance. The circular followed a review of the account opening practices of 12 securities brokerage firms. The review identified several significant deficiencies, including insufficient due diligence on account opening documents, acceptance of suspicious or forged documents during the account opening process, and weaknesses in managing cross-border agency relationships with overseas intermediaries. The SFC expressed deep concern about the potential misuse of client accounts for suspicious or illegal transactions, and the resulting increased risks of money laundering and terrorist financing. The SFC requires all licensed corporations to conduct internal checks as soon as practicable to detect whether any suspicious or forged documents have been accepted for account opening. The SFC also outlined additional measures for licensed corporations in opening and managing accounts for Mainland investors.