The Hong Kong Securities and Futures Commission (SFC) has prohibited Kao Cheng Yung, a former responsible officer and senior manager at CSC Futures (HK) Limited (CSC), from re-entering the industry for six months from 19 April 2025 to 18 October 2025. The action relates to AML/CFT and other regulatory failures at CSC between January 2017 and December 2018 that the SFC attributed to Kao’s failure to discharge his duties during the relevant period. The case follows the SFC’s earlier sanctions against CSC, which included a reprimand and a $4.95 million fine. The SFC found that CSC allowed clients to place orders using customer supplied systems without conducting due diligence, leaving the firm unable to properly assess and manage money laundering, terrorist financing and other risks, and that it failed to detect and properly follow up on client deposits that were incommensurate with clients’ declared financial profiles. In determining the sanction, the SFC cited the seriousness of inadequate client monitoring and AML/CFT controls, the need for deterrence, and Kao’s otherwise clean disciplinary record.
Hong Kong Securities & Futures Commission 2025-04-22
Hong Kong Securities and Futures Commission bans former CSC Futures responsible officer Kao Cheng Yung for six months over AML and client monitoring failures
The Hong Kong Securities and Futures Commission (SFC) has banned Kao Cheng Yung, a former senior manager at CSC Futures (HK) Limited, from the industry for six months due to AML/CFT and regulatory failures at CSC between 2017 and 2018. This follows previous SFC sanctions against CSC, including a reprimand and a $4.95 million fine, for inadequate client monitoring and failure to manage money laundering and terrorist financing risks. The SFC emphasized the seriousness of these failures and the need for deterrence.