Enforcement
Concord Futures Corp., Its former Responsible Person Wang and Associated Person Chen Sanctioned for Violation of Laws and Regulations Governing Futures Business
2021-01-25
1. Date the fine was imposed: 25 January, 2021.
2. Recipient of the fine: Concord Futures Corp. (hereinafter "Concord Futures") and its associated person Wang (hereinafter " Wang ") and Chen (hereinafter " Chen ").
3. Legal basis of the fine: paragraph 5, Article 7 of the Money Laundering Control Act; paragraph 4, Article 3 of the Regulations Governing Anti-Money Laundering of Financial Institutions; paragraph 1 and 2, Article 2, paragraph 23, Article 55 of the Regulations Governing Futures Commission Merchants; paragraph 1, Article 4, and paragraph 2, Article 6 of Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets; paragraph 2, Article 16 of the Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants.
4. Facts of the violation and reasons:
(1) Chen conducted the AML/CFT operation, failed to identify and verify the relationship between the customers with reliable, independent source documents, data or information, and retain copies of such customers’ identity documents or record the relevant information thereon. Wang also failed to review and supervise such operation. Concord Futures is verified to have violated paragraph 4, Article 3 of the Regulations Governing Anti-Money Laundering of Financial Institutions, and Wang and Chen have violated paragraph 2, Article 16 of the Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants.
(2) Concord Futures accepted the customers, who had authorized another person to engage in futures trading, to fill in the AML/CFT questionnaire with the same password as the one for placing online orders, and had not established other effective control measures. Besides, Concord Futures accepted online orders and online applications for withdrawal of such customers, and failed to separate with different passwords or independent systems in compliance with its internal control system. All such facts were found to be in violation of paragraphs 1 and 2, Article 2 of the Regulations Governing Futures Commission Merchants.
5. Resulting fine: A fine of NT$500,000 is imposed in accordance with paragraph 5, Article 7 of the Money Laundering Control Act, and a fine of NT$240,000 is imposed in accordance with subparagraph 2, paragraph 1, Article 119 of the Futures Trading Act for the deficiencies of its internal control system. Wang and Chen are individually suspended from performing futures trading business for 3 months.
2. Recipient of the fine: Concord Futures Corp. (hereinafter "Concord Futures") and its associated person Wang (hereinafter " Wang ") and Chen (hereinafter " Chen ").
3. Legal basis of the fine: paragraph 5, Article 7 of the Money Laundering Control Act; paragraph 4, Article 3 of the Regulations Governing Anti-Money Laundering of Financial Institutions; paragraph 1 and 2, Article 2, paragraph 23, Article 55 of the Regulations Governing Futures Commission Merchants; paragraph 1, Article 4, and paragraph 2, Article 6 of Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets; paragraph 2, Article 16 of the Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants.
4. Facts of the violation and reasons:
(1) Chen conducted the AML/CFT operation, failed to identify and verify the relationship between the customers with reliable, independent source documents, data or information, and retain copies of such customers’ identity documents or record the relevant information thereon. Wang also failed to review and supervise such operation. Concord Futures is verified to have violated paragraph 4, Article 3 of the Regulations Governing Anti-Money Laundering of Financial Institutions, and Wang and Chen have violated paragraph 2, Article 16 of the Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants.
(2) Concord Futures accepted the customers, who had authorized another person to engage in futures trading, to fill in the AML/CFT questionnaire with the same password as the one for placing online orders, and had not established other effective control measures. Besides, Concord Futures accepted online orders and online applications for withdrawal of such customers, and failed to separate with different passwords or independent systems in compliance with its internal control system. All such facts were found to be in violation of paragraphs 1 and 2, Article 2 of the Regulations Governing Futures Commission Merchants.
5. Resulting fine: A fine of NT$500,000 is imposed in accordance with paragraph 5, Article 7 of the Money Laundering Control Act, and a fine of NT$240,000 is imposed in accordance with subparagraph 2, paragraph 1, Article 119 of the Futures Trading Act for the deficiencies of its internal control system. Wang and Chen are individually suspended from performing futures trading business for 3 months.
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- Update： 2021-02-01
