Who was sanctioned, and for what?

Luk Fook Securities (HK) was publicly reprimanded and fined 2,100,000 HKD because inadequate cybersecurity controls might have contributed to a ransomware attack on 19 September 2022 hitting numerous core servers and to full recovery taking until 7 October 2022; during that time clients could not trade via the app or internet platform. Findings included missing firewall protection, outdated operating systems and antivirus software, weak access and password controls with credentials stored unencrypted, insufficient controls over remote access and external devices, inadequate data backup and a last security training session in 2018.

Authority / court

Securities and Futures Commission (SFC)

Area of law

Information security and cyber · Security measures and risk management

Legal basis

s. 194 SFO (Cap. 571); Code of Conduct GP 2, GP 3, GP 7, paras. 12.1, 18.5 und Schedule 7; Guidelines for Reducing and Mitigating Hacking Risks Associated with Internet Trading

Action

Fine

Status of proceedings

final

Sector

Financial services and insurance

Repeat case

no

Mitigating circumstances

Root-cause review with an independent reviewer, strengthened controls, no evidence of client loss, cooperation, clean disciplinary record.

Published

28 Jul 2026

Original amount 2,100,000 HKD, converted at the ECB reference rate of 28 Jul 2026.

Checked against the official source on 3 Oct 2026 · Direct link

The SFC publicly reprimanded China Industrial Securities International Asset Management (CISIAM) and fined it HKD 6.8 million because, between August 2019 and September 2020, the manager of a private fund set up for the insurer Tahoe Life acquired complex structures with notes linked to bonds of a related company at the request of the insurer's chief investment officer, without identifying and properly examining the red flags. CISIAM also failed to observe the fund's investment restrictions and objectives and did not manage its risks effectively. In setting the penalty, the SFC also took into account management fees of around HKD 1.9 million received from the fund.

Authority / court

Securities and Futures Commission (SFC), Hongkong

Area of law

Capital markets and financial supervision · Organisational requirements

Legal basis

Section 194 Securities and Futures Ordinance (Cap. 571); General Principle 2 Code of Conduct; Paragraphen 1.2(d), 3.1 und 3.11.1 Fund Manager Code of Conduct; Abschnitt VIII Management, Supervision and Internal Control Guidelines

Action

Fine

Status of proceedings

unknown

Sector

Financial services and insurance

Repeat case

no

Mitigating circumstances

Remedial measures (new policies on risk management and dubious investment arrangements, compliance training), cooperation with the SFC and an otherwise clean disciplinary record.

Published

27 Jul 2026

Original amount 6,800,000 HKD, converted at the ECB reference rate of 27 Jul 2026.

Checked against the official source on 3 Oct 2026 · Direct link

Bright Smart Securities International (H.K.) was publicly reprimanded and fined 2,800,000 HKD because between November 2023 and September 2025 its controls did not prevent 615 clients from executing 1,021 pairs of wash trades (trades without a change in beneficial ownership) in 736 shares and warrants. Monitoring was mostly after the event and manual, and several wash trades by one client on the same day counted as a single occurrence. Similar deficiencies had been identified and raised repeatedly before but were not fully remedied in any instance.

Authority / court

Securities and Futures Commission (SFC)

Area of law

Capital markets and financial supervision · Market abuse and insider dealing

Legal basis

s. 194 SFO (Cap. 571); Code of Conduct GP 2, para. 4.3

Action

Fine

Status of proceedings

final

Sector

Financial services and insurance

Mitigating circumstances

Enhanced systems and a commitment to an independent effectiveness review, cooperation.

Published

27 Jul 2026

Original amount 2,800,000 HKD, converted at the ECB reference rate of 27 Jul 2026.

Checked against the official source on 3 Oct 2026 · Direct link

The SFC publicly reprimanded Kylin International (HK) and fined it HKD 9 million for failures as investment manager or consultant of six sub-funds of a Cayman Islands fund from August 2018. The SFC found that conflicts of interest arising from six loans by the firm or a director to four sub-funds were neither managed nor disclosed, reconciliations, valuations and audits were missing, investors were wrongly told that the suitability requirement did not apply, KYC and suitability controls were inadequate and anti-money laundering records were missing. The firm ceased its regulated activities at the end of 2023; its licence was revoked at its request in January 2025.

Authority / court

Securities and Futures Commission (SFC), Hongkong

Area of law

Capital markets and financial supervision · Organisational requirements

Legal basis

Section 194 Securities and Futures Ordinance (Cap. 571)

Action

Fine

Status of proceedings

unknown

Sector

Financial services and insurance

Repeat case

no

Mitigating circumstances

Remedial measures after an SFC review in late 2020, cessation of regulated activities and an otherwise clean disciplinary record.

Liability of senior managers

Measures against individuals are not set out here.

Published

9 Feb 2026

Original amount 9,000,000 HKD, converted at the ECB reference rate of 9 Feb 2026.

Checked against the official source on 3 Oct 2026 · Direct link

Saxo Capital Markets HK was publicly reprimanded and fined 4,000,000 HKD because between November 2018 and November 2022 retail clients, too, could trade on its online trading platform 32 complex virtual asset-related products which under the regulators' circulars were reserved for professional investors (1,446 transactions by 130 retail clients and six professional investors). The firm neither assessed clients' knowledge nor provided sufficient information and warnings; the detection rules adopted from its parent group had not identified the products as crypto-related.

Authority / court

Securities and Futures Commission (SFC)

Area of law

Capital markets and financial supervision · Organisational requirements

Legal basis

s. 194 SFO (Cap. 571); Code of Conduct; Guidelines on Online Distribution and Advisory Platforms; SFC-Rundschreiben vom 01.11.2018 und HKMA/SFC-Rundschreiben vom 28.01.2022

Action

Fine

Status of proceedings

final

Sector

Financial services and insurance

Repeat case

no

Mitigating circumstances

Self-report, voluntary compensation of clients, cessation of regulated activities, cooperation and acceptance of the findings, otherwise clean disciplinary record.

Published

6 Jan 2026

Original amount 4,000,000 HKD, converted at the ECB reference rate of 6 Jan 2026.

Checked against the official source on 3 Oct 2026 · Direct link

The SFC publicly reprimanded EFG Bank AG and fined it HKD 10,850,000 because, between January 2015 and December 2020, the bank failed to take special product features into account in its due diligence on 322 bonds, updated its policies late after the complex product regime took effect and in some cases served customers without the required information and warning statements. In addition, due diligence records were missing for 141 bonds, and the bank did not report the failures to the SFC immediately. The bank will apply an enhanced complaint handling procedure for customers who acquired one of 351 potentially affected products.

Authority / court

Securities and Futures Commission (SFC), Hongkong

Area of law

Capital markets and financial supervision · Organisational requirements

Legal basis

Section 196 Securities and Futures Ordinance (Cap. 571); Code of Conduct for Persons Licensed by or Registered with the SFC; Management, Supervision and Internal Control Guidelines

Action

Fine

Status of proceedings

unknown

Sector

Financial services and insurance

Mitigating circumstances

Remedial measures on product due diligence, cooperation with the HKMA and the SFC, and commitment to an enhanced complaint handling procedure for affected customers.

Published

11 Dec 2025

Original amount 10,850,000 HKD, converted at the ECB reference rate of 11 Dec 2025.

Checked against the official source on 3 Oct 2026 · Direct link

Tung Tai Securities was reprimanded and fined 900,000 HKD because between September 2019 and February 2020, acting on instructions from a bogus email address resembling the genuine one, it sold an overseas client's shares and transferred the proceeds of 3,301,740 USD to three overseas bank accounts not designated by the client. Red flags such as transfers rejected by several banks were ignored, and effective controls to protect client assets from theft and fraud were lacking.

Authority / court

Securities and Futures Commission (SFC)

Area of law

Capital markets and financial supervision · Organisational requirements

Legal basis

s. 194 SFO (Cap. 571); Code of Conduct GP 2, GP 3, GP 8, paras. 4.3, 11.1(a); Management, Supervision and Internal Control Guidelines Part VII

Action

Fine

Status of proceedings

final

Sector

Financial services and insurance

Repeat case

no

Mitigating circumstances

Compensation of the client, improved order-handling and execution procedures, independent review of controls, cooperation, otherwise clean disciplinary record.

Published

13 Nov 2025

Original amount 900,000 HKD, converted at the ECB reference rate of 13 Nov 2025.

Checked against the official source on 3 Oct 2026 · Direct link

UBS AG was publicly reprimanded and fined 8,000,000 HKD in Hong Kong because, from 2009 to July 2022, its automated process for classifying professional investors rested on a misinterpretation of the minimum portfolio requirement for certain joint accounts. From July 2018 to July 2022 alone, 560 joint accounts were misclassified; securities of 23 of these accounts were lent in 9,190 lending transactions without valid authority, and 94 accounts carried out 500 transactions in products reserved for professional investors. In August 2021 the regulator had already fined UBS 9.8 million HKD, among other things for similar failings.

Authority / court

Securities and Futures Commission (SFC)

Area of law

Capital markets and financial supervision · Organisational requirements

Legal basis

s. 196 SFO (Cap. 571); s. 4 Securities and Futures (Client Securities) Rules; s. 11(3A) Securities and Futures (Contract Notes, Statements of Account and Receipts) Rules; Securities and Futures (Professional Investor) Rules; Code of Conduct

Action

Fine

Status of proceedings

final

Sector

Financial services and insurance

Employees

10,000 or more

Repeat case

yes

Mitigating circumstances

Look-back review and remediation after self-reporting, cooperation, commitment to an enhanced complaint handling procedure for potentially misclassified clients.

Published

20 Oct 2025

Original amount 8,000,000 HKD, converted at the ECB reference rate of 20 Oct 2025.

Checked against the official source on 3 Oct 2026 · Direct link

The SFC publicly reprimanded Instinet Pacific and fined it HKD 8 million because, between December 2012 and March 2018, the broker failed to report 8,817 pairs of cross trades between clients and an affiliated company, worth around HKD 25.9 billion, to the Stock Exchange of Hong Kong as required by Rule 526 of the Exchange Rules. There were neither internal rules on reporting such trades nor any review of the reporting process.

Authority / court

Securities and Futures Commission (SFC), Hongkong

Area of law

Capital markets and financial supervision · Disclosure and reporting obligations

Legal basis

Section 194 Securities and Futures Ordinance (Cap. 571); Rule 526 Rules of the Exchange (SEHK); General Principles 2 und 7 sowie Paragraph 12.1 Code of Conduct

Action

Fine

Status of proceedings

unknown

Sector

Financial services and insurance

Mitigating circumstances

The firm ceased the relevant trade flows on its own initiative and cooperated with the SFC.

Published

8 Sep 2025

Original amount 8,000,000 HKD, converted at the ECB reference rate of 8 Sep 2025.

Checked against the official source on 3 Oct 2026 · Direct link

Deutsche Bank AG was publicly reprimanded and fined 23,800,000 HKD in Hong Kong. Clients were overcharged fees of about 5 million USD in management fees on 39 accounts, 10,988 EUR at 92 customers and 493 USD at 32 customers, because agreed discounts were not applied, floating rate debt instruments were wrongly valued and fund prices were not updated. 261 single stock and 1,590 industry research reports lacked disclosure of investment banking relationships. 40 ETFs were given too low a product risk rating. The proceedings stemmed from the bank's self-reports.

Authority / court

Securities and Futures Commission (SFC)

Area of law

Capital markets and financial supervision · Organisational requirements

Legal basis

s. 196 SFO (Cap. 571); Code of Conduct GP 2, GP 7, paras. 2.1, 12.1, 16.5(d)

Action

Fine

Status of proceedings

final

Sector

Financial services and insurance

Employees

10,000 or more

Culpability

negligent

Mitigating circumstances

Self-reports, root-cause analysis, remediation and stronger controls, refund of overcharged fees, breaches found by the regulator to be inadvertent and without intent, cooperation and acceptance of the findings.

Published

28 Aug 2025

Original amount 23,800,000 HKD, converted at the ECB reference rate of 28 Aug 2025.

Checked against the official source on 3 Oct 2026 · Direct link

The SFC publicly reprimanded The Hongkong and Shanghai Banking Corporation (HSBC) and fined it HKD 4.2 million because, between 2013 and 2021, the bank failed to disclose, or disclosed incorrectly, its investment banking relationships with the companies covered in research reports on Hong Kong-listed securities. The cause was deficiencies in recording and mapping data across systems; an estimated more than 4,200 reports were affected. Following a self-report, the HKMA investigated jointly with the SFC.

Authority / court

Securities and Futures Commission (SFC), Hongkong

Area of law

Capital markets and financial supervision · Disclosure and reporting obligations

Legal basis

Section 196 Securities and Futures Ordinance (Cap. 571); Paragraph 16.5(d), General Principles 2, 3 und 7 sowie Paragraph 12.1 Code of Conduct

Action

Fine

Status of proceedings

unknown

Sector

Financial services and insurance

Employees

10,000 or more

Mitigating circumstances

No evidence of client losses, root-cause review, enhancement of systems and controls, and cooperation with the HKMA and the SFC.

Published

26 Aug 2025

Original amount 4,200,000 HKD, converted at the ECB reference rate of 26 Aug 2025.

Checked against the official source on 3 Oct 2026 · Direct link

The Hong Kong branch of Indian Overseas Bank was reprimanded, ordered to pay a pecuniary penalty of 8,500,000 HKD and required to carry out a look-back review of its transaction-monitoring alerts, submit a remedial plan and have its effectiveness assessed by an external adviser. Between May 2021 and January 2024 alerts were not properly followed up, unusual transactions of ten customers were not examined and documented, and senior management did not steer anti-money laundering controls effectively; a competent compliance officer, clear responsibilities and adequate training were lacking.

Authority / court

Hong Kong Monetary Authority (HKMA)

Area of law

Money laundering and terrorist financing · Internal controls

Legal basis

s. 21(2)(a), (b), (c) AMLO (Cap. 615); Schedule 2 ss. 5(1)(c), 19(3), 23 AMLO

Action

Fine

Status of proceedings

unknown

Sector

Financial services and insurance

Repeat case

no

Mitigating circumstances

No previous disciplinary record under the AMLO, cooperation with the regulator.

Liability of senior managers

The regulator found that senior management did not take a clear leadership role in anti-money laundering and did not appoint a competent compliance officer; the decision contains no measures against individuals.

Published

22 Jul 2025

Original amount 8,500,000 HKD, converted at the ECB reference rate of 22 Jul 2025.

Checked against the official source on 3 Oct 2026 · Direct link

The HKMA reprimanded the licensed stored value facility provider 33 Financial Services and ordered it to pay a pecuniary penalty of HKD 1.6 million. Between December 2019 and August 2023, a group made up of one corporate and five individual customers bought more than 49,000 gift cards for around HKD 25 million without the firm sufficiently establishing the purpose and nature of the business relationship; for ten customers whom it knew to be buying on behalf of businesses, those businesses were not subjected to due diligence. The firm also failed to ensure that business partners verified and documented the identity of non-Hong Kong resident customers in person.

Authority / court

Hong Kong Monetary Authority (HKMA)

Area of law

Money laundering and terrorist financing · Customer due diligence

Legal basis

Sections 33Q(2)(a) und 33Q(2)(b)(iii), Section 8Q Payment Systems and Stored Value Facilities Ordinance (Cap. 584) i. V. m. Section 6(2)(b) Part 2 Schedule 3; Guideline on AML/CFT (For Stored Value Facility Licensees)

Action

Fine

Status of proceedings

unknown

Sector

Financial services and insurance

Repeat case

yes

Mitigating circumstances

Remedial measures to improve controls and cooperation with the HKMA.

Published

22 Jul 2025

Original amount 1,600,000 HKD, converted at the ECB reference rate of 22 Jul 2025.

Checked against the official source on 3 Oct 2026 · Direct link

The SFC publicly reprimanded Interactive Brokers Hong Kong and fined it HKD 4.2 million because, between December 2017 and October 2020, the broker lent securities listed on the Hong Kong stock exchange belonging to 7,911 clients on the basis of expired standing authorities. Owing to a programming error, the renewal notices had not been sent. This breached the Securities and Futures (Client Securities) Rules and the Code of Conduct.

Authority / court

Securities and Futures Commission (SFC), Hongkong

Area of law

Capital markets and financial supervision · Organisational requirements

Legal basis

Section 194 Securities and Futures Ordinance (Cap. 571); Sections 7 und 10 Securities and Futures (Client Securities) Rules; General Principles 7 und 8, Paragraphen 11.1(a) und 12.1 Code of Conduct

Action

Fine

Status of proceedings

unknown

Sector

Financial services and insurance

Culpability

negligent

Mitigating circumstances

Self-report and remedial action, conduct not deliberate, no evidence of client loss, cooperation and acceptance of the findings.

Published

28 Apr 2025

Original amount 4,200,000 HKD, converted at the ECB reference rate of 28 Apr 2025.

Checked against the official source on 3 Oct 2026 · Direct link

Hang Seng Bank was publicly reprimanded and fined 66,400,000 HKD. Relationship managers had induced 46 clients, whose fund transactions in 2016/2017 were recorded as their own choice, to trade excessively often with short holding periods; between 2014 and 2018, 388 clients without established knowledge of derivatives bought derivative funds in 629 transactions; and between 2014 and 2023 the bank improperly retained benefits, overcharged fees and inadequately disclosed trailer fees (at least 22.4 million HKD). The bank has compensated affected clients and refunded the amounts overcharged.

Authority / court

Securities and Futures Commission (SFC)

Area of law

Capital markets and financial supervision · Organisational requirements

Legal basis

s. 196 SFO (Cap. 571); Code of Conduct for Persons Licensed by or Registered with the SFC

Action

Fine

Status of proceedings

final

Sector

Financial services and insurance

Repeat case

no

Mitigating circumstances

Compensation of clients and refund of benefits, internal and independent reviews after self-reporting, cooperation with the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) and acceptance of the findings, no previous disciplinary record.

Published

27 Jan 2025

Original amount 66,400,000 HKD, converted at the ECB reference rate of 27 Jan 2025.

Checked against the official source on 3 Oct 2026 · Direct link

The HKMA imposed a pecuniary penalty of HKD 4 million on China CITIC Bank International because, in the transaction monitoring system it used from November 2015, 13 of 33 detection rules and two core model rules were not implemented as intended until July 2018, so fewer alerts were generated. For 12 of 30 sampled customers, the bank did not examine the background and purpose of unusual transactions. The HKMA identified the lack of a maker-checker control over system values and inadequate acceptance testing as root causes.

Authority / court

Hong Kong Monetary Authority (HKMA)

Area of law

Money laundering and terrorist financing · Internal controls

Legal basis

Section 21(2)(c) Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615); Sections 5(1)(c) und 19(3) Schedule 2 AMLO

Action

Fine

Status of proceedings

unknown

Sector

Financial services and insurance

Repeat case

no

Mitigating circumstances

Remedial action, no previous disciplinary record under the AMLO and cooperation with the HKMA.

Published

6 Dec 2024

Original amount 4,000,000 HKD, converted at the ECB reference rate of 6 Dec 2024.

Checked against the official source on 3 Oct 2026 · Direct link

The HKMA imposed a pecuniary penalty of HKD 4 million on Fubon Bank (Hong Kong) because, between April 2019 and July 2022, the bank lacked effective procedures for changes to its transaction monitoring: data transfer from the core banking system was poorly controlled, acceptance tests were ineffective, and there were no procedures for following up a sharp fall in alerts from June 2019 or for regularly reviewing the scope of monitoring. Transactions of around 64,000 customers were not properly scrutinised, and for around 1,500 of them no trigger event review took place after dormant business relationships were reactivated.

Authority / court

Hong Kong Monetary Authority (HKMA)

Area of law

Money laundering and terrorist financing · Internal controls

Legal basis

Section 21(2)(c) Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615); Sections 19(3) und 5(1) Schedule 2 AMLO

Action

Fine

Status of proceedings

unknown

Sector

Financial services and insurance

Repeat case

no

Mitigating circumstances

Self-report, cooperation, remediation of the deficiencies and no previous disciplinary record.

Published

8 Nov 2024

Original amount 4,000,000 HKD, converted at the ECB reference rate of 8 Nov 2024.

Checked against the official source on 3 Oct 2026 · Direct link

The futures broker Xinhu International Futures (Hong Kong) was publicly reprimanded and fined 9,000,000 HKD. Between December 2016 and March 2019 it did not assess the customer-supplied trading software used by 84 clients, did not adequately question deposits into six accounts that did not match the declared financial profile, and, lacking effective monitoring, failed to detect 12,413 trades in ten client accounts in which buyer and seller were the same (self-matched trades).

Authority / court

Securities and Futures Commission (SFC)

Area of law

Money laundering and terrorist financing · Internal controls

Legal basis

s. 194 SFO (Cap. 571); Schedule 2 ss. 5(1)(a)–(c), 23 AMLO (Cap. 615); AML Guideline paras. 2.1–2.3, 4.7.12, 5.1, 5.10, 5.11; Code of Conduct GP 2, GP 3, paras. 4.3, 5.1

Action

Fine

Status of proceedings

final

Sector

Financial services and insurance

Repeat case

no

Mitigating circumstances

Cooperation with the regulator, otherwise clean disciplinary record.

Liability of senior managers

Measures against individuals are not set out here.

Published

9 Oct 2024

Original amount 9,000,000 HKD, converted at the ECB reference rate of 9 Oct 2024.

Checked against the official source on 3 Oct 2026 · Direct link