ePaylinks fined $1m for AML lapses

The Hong Kong Monetary Authority has fined online payment service provider ePaylinks Technology HK$1 million for failing to comply with anti-money laundering and counter-terrorist financing measures.

The disciplinary action follows an on-site examination and further investigation by the HKMA which found that during the period from November 2016 to May 2019, ePaylinks failed to have in place adequate and appropriate systems of control to comply with the relevant paragraphs of the Guideline on Anti-Money Laundering and Counter-Financing of Terrorism for licensed stored value facility, also commonly known as electronic wallets or e-wallets.

Specifically, the contravention included failing to monitor the transactions in order to continuously monitor the business relationships, failing to implement an effective name screening mechanism, and failing to take additional measures or conducting enhanced due diligence to mitigate money laundering or terrorist financing risk in high-risk situations, the HKMA said.

As business continues to develop following the introduction of the regulatory regime in 2016, SVF licensees should stay alert to the evolving money laundering or terrorist financing risk and system vulnerabilities, and put in place effective control measures and procedures, said Carmen Chu, executive Director (enforcement and AML) of the HKMA.