Hong Kong insurance regulator bars six over $930,000 payments

The intermediaries breached internal controls by helping customers falsely declare who purchased their bank drafts.

Hong Kong’s Insurance Authority (IA) has suspended or barred six insurance intermediaries for six to 13 months for breaching anti-money laundering and counter-financing of terrorism controls involving premium payments totalling about $930,000 (HK$7.3m).

The individuals breached internal controls imposed by their appointing insurers by helping customers falsely declare that they had purchased bank drafts to settle insurance premiums.

They also purchased the bank drafts on behalf of the customers.

The six individuals are Lam Nam, Lang Chit, Liang Shuxian, Ng Chi Wah, Yeung Chung Chak and Zhang Xindan.

The IA said the disciplinary action highlights the need for licensed insurance intermediaries to comply with regulatory requirements designed to prevent money laundering and the financing of terrorism.

Maria Tsui, head of enforcement at the IA, said robust internal controls were important in preventing money laundering and financing of terrorism activities, but compliance by licensed intermediaries remained essential to maintaining Hong Kong’s position as an international financial centre.

She added that intermediaries should keep up to date with regulatory requirements and comply with them, given the heavy penalties associated with money laundering and financing of terrorism offences.

($1 = HK$7.85)