Enforcement
Sanction on Hua Nan Securities Co., Ltd. for Violation of Securities Management Related Laws and Regulations
2023-10-26
1. Date of sanction: October 26, 2023.
2. Object of sanction: Hua Nan Co., Ltd. (hereinafter referred to as Hua Nan Securities).
3. Legal basis for the sanction: Subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act at the time of the act; paragraph 5, Article 7 of the Money Laundering Control Act; paragraph 2, Article 2 of the Regulations Governing Securities Firms; and paragraphs 1 and 3, Article 5; Article 8; and item 1, Article 15 of the Regulations Governing Anti-Money Laundering of Financial Institutions.
4. Facts of violation: The Taiwan Stock Exchange Corporation conducted an audit of Hua Nan Securities from September 15 to October 4, 2023, and found that the company failed to handle internal personnel account opening operations in accordance with regulations, failed to implement audits of customer entrusted trading quotas and financial resources, failed to verify the reasons and rationality of orders placed under the same IP, failed to effectively manage the notification and disclosure of entrusted trading data and information from the custodian, mailed customers’ trading statements to the email boxes of the company’s internal personnel, and failed to provide quotes from the liquidity providers of the emerging market’s general board stocks in accordance with regulations; these are verified to have violated paragraph 2, Article 2 of the Regulations Governing Securities Firms. In addition, the company failed to perform regular reviews of customer accounts to prevent money laundering and counter terrorism financing in accordance with customer risk levels, and failed to perform inspections of suspected money laundering transactions; these are verified to have violated paragraphs 1 and 3, Article 5; Article 8; and item 1, Article 15 of the Regulations Governing Anti-Money Laundering of Financial Institutions.
5. Fines of NT$720,000 and NT$500,000 are respectively imposed on Hua Nan Securities in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act at the time of the act; and paragraph 5, Article 7 of the Money Laundering Control Act.
2. Object of sanction: Hua Nan Co., Ltd. (hereinafter referred to as Hua Nan Securities).
3. Legal basis for the sanction: Subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act at the time of the act; paragraph 5, Article 7 of the Money Laundering Control Act; paragraph 2, Article 2 of the Regulations Governing Securities Firms; and paragraphs 1 and 3, Article 5; Article 8; and item 1, Article 15 of the Regulations Governing Anti-Money Laundering of Financial Institutions.
4. Facts of violation: The Taiwan Stock Exchange Corporation conducted an audit of Hua Nan Securities from September 15 to October 4, 2023, and found that the company failed to handle internal personnel account opening operations in accordance with regulations, failed to implement audits of customer entrusted trading quotas and financial resources, failed to verify the reasons and rationality of orders placed under the same IP, failed to effectively manage the notification and disclosure of entrusted trading data and information from the custodian, mailed customers’ trading statements to the email boxes of the company’s internal personnel, and failed to provide quotes from the liquidity providers of the emerging market’s general board stocks in accordance with regulations; these are verified to have violated paragraph 2, Article 2 of the Regulations Governing Securities Firms. In addition, the company failed to perform regular reviews of customer accounts to prevent money laundering and counter terrorism financing in accordance with customer risk levels, and failed to perform inspections of suspected money laundering transactions; these are verified to have violated paragraphs 1 and 3, Article 5; Article 8; and item 1, Article 15 of the Regulations Governing Anti-Money Laundering of Financial Institutions.
5. Fines of NT$720,000 and NT$500,000 are respectively imposed on Hua Nan Securities in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act at the time of the act; and paragraph 5, Article 7 of the Money Laundering Control Act.
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- Update： 2023-10-31
