EFG Bank AG, Hong Kong Branch (EFGHK), has incurred a fine of US$2.04 million from the Hong Kong Monetary Authority (HKMA) due to deficiencies in conducting customer due diligence (CDD). This penalty was imposed under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615 of the Laws of Hong Kong) and Section 21 of AMLO.

During the investigation, the HKMA team identified shortcomings within two distinct timeframes. Firstly, from February 21, 2016, to January 16, 2018, deficiencies emerged in the execution of customer due diligence (CDD) for clients who had been transferred from another financial institution. Secondly, between April 1, 2012, and October 31, 2018, inadequacies were noted in both the initial onboarding CDD procedures and the ongoing CDD measures for certain other customers.

Furthermore, on January 11, 2018, the Hong Kong Securities and Futures Commission (SFC) reprimanded and imposed a fine of US$225,000 on EFG Bank AG (EFG Bank). This penalty arose from EFG Bank’s execution of 139 transactions in offshore listed index options for 11 clients, without possessing the required registration to engage in futures contracts.