Enforcement
Disciplinary Action on Ta Ching Securities Co., Ltd. for Violation of Anti-Money Laundering Control Act and Securities Laws and Regulations
2021-01-08
1. Date of disciplinary action: January 8, 2021
2. Object of disciplinary action: Ta Ching Securities Co., Ltd
3. Legal basis for the disciplinary action: paragraph 5, Article 10 of the Money Laundering Control Act; paragraph 1, Article 15 of the Regulations Governing Anti-Money Laundering of Financial Institutions; subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act; paragraph 2, Article 2 of the Regulations Governing Securities Firms, and paragraph 4, Article 44 of the Securities and Exchange Act.
4. Facts of law violation:
(1) The company failed to conduct the complete review process to determine whether the transactions in the daily computerized detected suspicious ML/TF transaction reports (STR) are suspected of involving ML/TF activities. In addition, the company failed to make necessary evaluation if or not to file the STR, under the circumstances when the client refused to provide the latest client information, or when the company rejected the client account opening for any detected potential client anomalies.
(2) The in-house traders placed orders of foreign securities proprietary trading via personal mobile phone outside the business premises during holidays and non-business hours. In addition, the quantity of individual stock purchase exceeded the authorized limit.
(3) There were unfavorable terms for consumers in the transaction contracts of principal guaranteed notes (PGN).
(4) The company failed to disclose in its 2018 annual report its directors and managers with their concurrent positions at other companies
(5) During the period (Oct 23, 2017 to July 31,2018), the exiting computerized client information was lack of their occupation information. The company failed to conduct enhanced due diligence on clients and it resulted in deficiency in client risk assessment.
5. Disciplinary action imposed:
A fine of NT$500,000 is imposed in accordance with paragraph 5, Article 10 of the Money Laundering Control Act and a fine of NT$480,000 is imposed in accordance with sub-paragraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act for the deficiencies of its internal control system.
2. Object of disciplinary action: Ta Ching Securities Co., Ltd
3. Legal basis for the disciplinary action: paragraph 5, Article 10 of the Money Laundering Control Act; paragraph 1, Article 15 of the Regulations Governing Anti-Money Laundering of Financial Institutions; subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act; paragraph 2, Article 2 of the Regulations Governing Securities Firms, and paragraph 4, Article 44 of the Securities and Exchange Act.
4. Facts of law violation:
(1) The company failed to conduct the complete review process to determine whether the transactions in the daily computerized detected suspicious ML/TF transaction reports (STR) are suspected of involving ML/TF activities. In addition, the company failed to make necessary evaluation if or not to file the STR, under the circumstances when the client refused to provide the latest client information, or when the company rejected the client account opening for any detected potential client anomalies.
(2) The in-house traders placed orders of foreign securities proprietary trading via personal mobile phone outside the business premises during holidays and non-business hours. In addition, the quantity of individual stock purchase exceeded the authorized limit.
(3) There were unfavorable terms for consumers in the transaction contracts of principal guaranteed notes (PGN).
(4) The company failed to disclose in its 2018 annual report its directors and managers with their concurrent positions at other companies
(5) During the period (Oct 23, 2017 to July 31,2018), the exiting computerized client information was lack of their occupation information. The company failed to conduct enhanced due diligence on clients and it resulted in deficiency in client risk assessment.
5. Disciplinary action imposed:
A fine of NT$500,000 is imposed in accordance with paragraph 5, Article 10 of the Money Laundering Control Act and a fine of NT$480,000 is imposed in accordance with sub-paragraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act for the deficiencies of its internal control system.
- Visitor： 10842
- Update： 2021-01-25
