AIA Group Ltd. was topic to a file high-quality of HK$23 million ($2.9 million) by the Insurance coverage Authority for anti-money laundering oversight, as town’s regulators steps up scrutiny of the business.
An on-site inspection by the regulator discovered “technical points” with AIA’s anti-money laundering system and related algorithm, the Insurance coverage Authority stated in an e-mailed assertion on Friday. The inspection was associated to enterprise between the interval of March 2016 to October 2022, it stated.
The lapses resulted in some clients who have been “politically uncovered individuals” failing to be picked up throughout the screening course of. That led to delays in figuring out their supply of cash and wealth, it added. Nonetheless, no insurance policies have been offered to shoppers who shouldn’t have been onboarded, the regulator stated.
The high-quality is the biggest because the watchdog took over regulation of insurance coverage firms since 2017. Town’s regulators have escalated inspections over the business amid a enterprise growth bolstered by mainland clients.
Hong Kong’s Insurance coverage Authority raided the workplaces of a licensed insurance coverage dealer and a referral firm, regulators stated in April. The dealer was suspected of utilizing unlicensed referrers to assist advise and promote insurance policies to mainland Chinese language.
AIA’s shares fell about 2.5% on Friday in Hong Kong, according to the Hold Seng Index.
A politically uncovered particular person is a person who holds or held distinguished positions that may be abused for the aim of laundering illicit funds or different predicate offenses akin to corruption or bribery, based on the definitions by the Monetary Motion Job Drive.
AIA’s Hong Kong unit additionally didn’t topic sure shoppers flagged by the system as “excessive danger” to “enhanced due diligence in a well timed method,” the regulator stated.
AIA was collaborative with the inspections that started in 2021, the corporate stated in an emailed assertion. “The conclusions have been technical in nature with no findings of cash laundering actions or inappropriate onboarding of any clients,” it added.
Authorities have ordered the corporate to submit a report ready by an impartial advisor tallying the “ongoing effectiveness” of remedial actions.
{Photograph}: AIA Group branding in Hong Kong. Picture credit score: Bertha Wang/Bloomberg
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