Disciplinary Procedures Against Horizon Securities Corp. in Violation of Money Laundering Control Act and Securities Firms Regulations
I.Time of disciplinary action: December 26, 2019.
II.Subject of disciplinary action: Horizon Securities Corp.
III.Basis of disciplinary disposition: Paragraph 5, Article 7 of the Money Laundering Control Act, Article 65 of the Securities and Exchange Act, Subparagraph 1, 2 and 3, Article 8 and Subparagraph 4, Article 9 of the Regulations Governing Anti-Money Laundering of Financial Institutions and Paragraph 2, Article 2 of the Regulations Governing Securities Firms.
IV.Descriptions of violations:
(1)Failure to regularly conduct name and title screening on the beneficial owners and senior management personnel of legal person clients.
(2)During the process of conducting name and title screening on the beneficial owners of legal person clients, there was a failure to confirm whether the name on the list was the same person and keep a verification record.
(3)The policies and procedures for name screening on customers and related parties of transactions and accounts and transaction monitoring policies and procedures were not documented and included in the internal regulations or control protocols.
(4)During the process of underwriting public subscription and placement for publiclytraded companies, there was a failure to verify if there were cases of impersonation offence in subscriptions conducted through the same network IP address and keep the verification records for future reference.
V.Results of disciplinary actions:
A fine of NT$500,000 is levied in accordance with Paragraph 5, Article 7 of the Money Laundering Control Act, and there are correctional penalties carried out in accordance with Article 65 of the Securities and Exchange Act.
Visitor： 768 Update： 2020-01-03