The Hong Kong Monetary Authority announced the completion of an investigation and disciplinary proceedings against 33 Financial Services Limited (33FS) under the Payment Systems and Stored Value Facilities Ordinance, reprimanding the firm and ordering a pecuniary penalty of HKD 1,600,000. The Monetary Authority found 33FS contravened section 8Q of the ordinance by failing to meet the minimum criterion requiring adequate and appropriate systems of control to comply with the Guideline on Anti-Money Laundering and Counter-Financing of Terrorism for Stored Value Facility (SVF) licensees. The investigation found that from 1 December 2019 to 31 August 2023 33FS had deficiencies in its controls relating to obtaining sufficient information on the purpose and intended nature of customer relationships, performing customer due diligence on business entities represented by individual customers, and ensuring customer identification and verification was properly performed and documented by outsourced business partners. In setting the sanction under section 33Q of the ordinance, the Monetary Authority considered the seriousness of the findings and 33FS’ prior disciplinary record, the need for industry deterrence, and the firm’s remedial actions and cooperation.