Hong Kong SFC Issues 5-Month Ban on Lion Futures ex-Responsible Officer, Manager-in-Charge & Director Ho Hin Hang for Failures in Money Laundering, Due Diligence & Complying with Regulatory Requirements from 2017 to 2018, Hong Kong SFC Fined Lion Futures $359,000 in 2023 for Due Diligence & Money-Laundering Failures Between 2017 to 2019
21st May 2025 | Hong Kong
The Hong Kong Securities and Futures Commission (SFC) has issued a 5-month ban on Lion Futures ex-Responsible Officer, Manager-in-Charge & Director Ho Hin Hang for failures in money laundering, due diligence & complying with regulatory requirements from 2017 to 2018. Hong Kong SFC (21/5/25): “The Securities and Futures Commission (SFC) has banned Mr Ho Hin Hang, former responsible officer (RO), manager-in-charge (MIC) and director of Lion Futures Limited (LFL), for five months from 21 May 2025 to 20 October 2025 (Note 1). The disciplinary action follows the SFC’s sanctions against LFL for its failures in complying with anti-money laundering and counter-terrorist financing (AML/CFT) and other regulatory requirements during the relevant period between May 2017 and July 2019 (Note 2). The SFC considers that LFL’s failures were attributable to Ho’s failure to discharge his duties as an RO and a member of the senior management of LFL between May 2017 and September 2018 within the relevant period. The SFC’s investigation found that LFL, without conducting adequate due diligence, was unable to properly assess and manage the money laundering and terrorist financing and other risks associated with permitting its clients to use client supplied systems (CSSs) in placing orders (Notes 3 and 4). The SFC also found that LFL failed to establish effective ongoing monitoring system to detect and assess suspicious trading patterns in client accounts.” In 2023 November, the Hong Kong SFC (Securities & Futures Commission) fined Lion Futures $359,000 (HKD 2.8 million) for due diligence & money-laundering failures between 2017 to 2019. Hong Kong SFC: “The SFC’s investigation found that LFL did not conduct any due diligence on the customer supplied systems (CSSs) used by five clients for placing orders during the material time. As a result, LFL was not in a position to properly assess and manage the money laundering and terrorist financing and other risks associated with the use of CSSs by its clients. In addition, the SFC found that LFL’s failure to put in place an effective ongoing monitoring system to detect suspicious trading patterns in client accounts resulted in its failure to detect 1,098 self-matched trades in five client accounts.” See below for more info:
“ Hong Kong SFC Issues 5-Month Ban on Lion Futures ex-Responsible Officer, Manager-in-Charge & Director Ho Hin Hang for Failures in Money Laundering, Due Diligence & Complying with Regulatory Requirements from 2017 to 2018, Hong Kong SFC Fined Lion Futures $359,000 in 2023 for Due Diligence & Money-Laundering Failures Between 2017 to 2019 “
Notes:
- Ho was licensed under the Securities and Futures Ordinance to carry on Type 2 (dealing in futures contracts) and Type 5 (advising on futures contracts) regulated activities and was accredited to LFL and approved to act as its RO from 29 December 2016 and 31 January 2019. Ho was also LFL’s MIC for overall management oversight, key business line, operational control and review, compliance, anti-money laundering and counter-terrorist financing, and risk management during different time periods between 14 July 2017 and 31 January 2019. He is currently not licensed by the SFC.
- LFL was reprimanded and fined $2.8 million by the SFC for its failures in complying with AML/CFT and other regulatory requirements. Please see the SFC’s press release dated 22 November 2023.
- CSSs are trading software developed and/or designated by the clients that enable them to conduct electronic trading through the internet, mobile phones and other electronic channels.
Hong Kong SFC Fines Lion Futures $359,000 for Due Diligence & Money-Laundering Failures Between 2017 to 2019
24th November 2023 – The Hong Kong SFC (Securities & Futures Commission) has fined Lion Futures $359,000 (HKD 2.8 million) for due diligence & money-laundering failures between 2017 to 2019. Hong Kong SFC: “The SFC’s investigation found that LFL did not conduct any due diligence on the customer supplied systems (CSSs) used by five clients for placing orders during the material time. As a result, LFL was not in a position to properly assess and manage the money laundering and terrorist financing and other risks associated with the use of CSSs by its clients. In addition, the SFC found that LFL’s failure to put in place an effective ongoing monitoring system to detect suspicious trading patterns in client accounts resulted in its failure to detect 1,098 self-matched trades in five client accounts.” See below for more info:
Hong Kong SFC Fines Lion Futures $359,000 for Due Diligence & Money-Laundering Failures Between 2017 to 2019
22nd Nov 2023 – The Securities and Futures Commission (SFC) has reprimanded and fined Lion Futures Limited (LFL) $2.8 million for failures in complying with anti-money laundering and counter-terrorist financing (AML/CFT) and other regulatory requirements between May 2017 and July 2019 (Note 1). The SFC’s investigation found that LFL did not conduct any due diligence on the customer supplied systems (CSSs) used by five clients for placing orders during the material time. As a result, LFL was not in a position to properly assess and manage the money laundering and terrorist financing and other risks associated with the use of CSSs by its clients (Notes 2 & 3). In addition, the SFC found that LFL’s failure to put in place an effective ongoing monitoring system to detect suspicious trading patterns in client accounts resulted in its failure to detect 1,098 self-matched trades in five client accounts (Note 4).
The SFC is of the view that LFL’s systems and controls were inadequate and ineffective, and failed to ensure compliance with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, the Guideline on Anti-Money Laundering and Counter-Terrorist Financing (AML Guideline) and the Code of Conduct (Notes 5 & 6). In deciding the disciplinary sanctions against LFL, the SFC has taken into account that:
- LFL’s failures to diligently monitor its clients’ activities and put in place adequate and effective AML/CFT systems and controls are serious as they could undermine public confidence in, and damage the integrity of, the market;
- LFL has taken remedial measures to enhance its internal systems and controls for continuous monitoring and identifying suspicious transactions;
- a strong deterrent message needs to be sent to the market that such failures are not acceptable;
- LFL cooperated with the SFC in resolving the SFC’s concerns; and
- LFL has an otherwise clean disciplinary record.
Notes:
- LFL is licensed under the Securities and Futures Ordinance to carry on Type 2 (dealing in futures contracts) and Type 5 (advising on futures contracts) regulated activities.
- CSSs are trading software developed and/or designated by the clients that enable them to conduct electronic trading through the Internet, mobile phones and other electronic channels.
- The CSSs were connected to LFL’s broker supplied system (BSS) through application programming interface (a set of functions that allows applications to access data and interact with external software components or operating systems). BSSs are trading facilities developed by exchange participants or vendors that enable the exchange participants to provide electronic trading services to investors through the Internet, mobile phones and other electronic channels.
- Self-matched trades refer to those trades where the client’s order matched with his/her own order in the opposite direction. The AML Guideline specifies the entry of matching buys and sells in particular securities and futures as an example of situations that might give rise to suspicion of money laundering, as it might create the illusion of trading and be an indication of market manipulation.
- Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
- Please refer to the Statement of Disciplinary Action for the relevant regulatory requirements.
A copy of the Statement of Disciplinary Action is available on the SFC website
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