Peter Zhang
Jul 22, 2025 05:03
The Hong Kong Monetary Authority has imposed a fine on 33 Financial Services Limited for non-compliance with the Payment Systems and Stored Value Facilities Ordinance.
The Hong Kong Monetary Authority (HKMA) has taken disciplinary action against 33 Financial Services Limited (33FS) for breaching the Payment Systems and Stored Value Facilities Ordinance (PSSVFO), according to the Hong Kong Monetary Authority. This action follows an investigation which revealed that 33FS failed to maintain adequate systems of control, as required under the ordinance.
Contraventions and Penalties
The HKMA’s investigation covered the period from December 1, 2019, to August 31, 2023. During this time, 33FS was found lacking in three critical areas: obtaining sufficient information on business relationships, conducting comprehensive customer due diligence (CDD), and ensuring proper identification and verification of customer identities. These deficiencies led to a penalty of HK$1,600,000 imposed on 33FS for contravening section 8Q of the PSSVFO.
The HKMA cited the seriousness of these findings and the company’s previous disciplinary record as influential factors in determining the penalty. Additionally, the need to send a strong deterrent message to the financial industry about the importance of robust anti-money laundering (AML) and counter-terrorism financing (CTF) controls was emphasized.
Remedial Measures and Cooperation
In response to the HKMA’s findings, 33FS has implemented remedial measures to enhance its systems of control. The company has shown cooperation in addressing the identified issues, which was taken into consideration by the HKMA when deciding on the disciplinary actions.
Raymond Chan, Executive Director (Enforcement and AML) of the HKMA, highlighted the significance of CDD measures in combating money laundering and terrorism financing risks. “Verifying the identity of customers and understanding the purpose and intended nature of the business relationships are essential elements of CDD measures. SVF licensees should ensure that they have effective CDD measures in place,” Chan stated.
Industry Implications
This disciplinary action serves as a reminder to financial institutions of the stringent compliance requirements set forth by the HKMA. The authority’s firm stance against non-compliance underscores the critical need for financial service providers to maintain robust internal controls and adhere to regulatory guidelines to prevent money laundering and terrorist financing activities.
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