Hong Kong fines WeChat Pay HK for legal breaches

WeChat Pay Hong Kong self-reported the case.

The Hong Kong Monetary Authority (HKMA) has fined WeChat Pay HK (WPHK) HK$875,000 due to breaches in anti-money laundering and counter-financing terrorism laws.

From 25 August 2016 to 24 October 2021, WPHK failed to have “adequate and appropriate systems” of control to to comply with the relevant paragraphs of the guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Stored Value Facility (SVF) Licensees), the central bank said in a statement posted on its website.

Deficiencies found in WPHK’s systems of controls were found in two areas. First was in undertaking customer due diligence (CDD) review upon trigger events.

HKMA also found deficiencies in WPHK’s application of enhanced due diligence measures to mitigate and manage the risks in a situation that by its nature may present a high money laundering and terrorist financing risk.

WPHK filed a self-report, with HKMA further investigating the matter.

In deciding the fine, HKMA said that it took into account WPHK’s self-reporting, its lack of previous disciplinary record, its cooperation with the HKMA to resolve concerns, and the fact that it has put in remedial measures to address the deficiencies identified.