The Hong Kong Monetary Authority (HKMA) has taken disciplinary action against TNG (Asia) Limited (TNG) for contravening the Payment Systems and Stored Value Facilities Ordinance (PSSVFO) in Hong Kong. This follows an investigation and disciplinary proceedings conducted by the HKMA. TNG was found to have failed in establishing adequate and appropriate systems of control for anti-money laundering and counter-terrorist financing (AML/CFT), as well as in maintaining sound governance and effective risk management frameworks. As a result, TNG has been reprimanded and ordered to pay a penalty of HK$1,575,000.
The HKMA's investigation revealed several deficiencies in TNG's operations:
- Between February 2019 and mid-July 2020, TNG did not have proper systems in place for transaction monitoring compliance under the AML/CFT guidelines.
- From August 2016 to August 2020, TNG lacked sound governance arrangements and an effective risk management framework.
- During the same period, TNG also failed to establish a robust internal control system to promote efficient operations and prevent or detect irregularities early.
In determining the disciplinary action, the HKMA considered the seriousness of the investigation findings, the necessity to send a clear deterrent message about the importance of AML/CFT systems and risk management, and the fact that TNG took remedial measures to address the deficiencies and enhance control systems. It's also noted that TNG had no previous disciplinary record and cooperated in resolving the issues identified by the HKMA.
The Executive Director (Enforcement and AML) of the HKMA, emphasized the importance of sound governance and internal control systems, along with strong compliance awareness among management and staff, as essential elements for an effective risk management framework for SVF licensees.
