Hong Kong's Insurance Authority (IA) has taken disciplinary action against six insurance intermediaries for breaching insurers' internal controls and assisting customers in making false declarations involving approximately HK$7.3m ($930,000) in bank drafts for premium payments.
The individuals, Lam Nam, Lang Chit, Liang Shuxian, Ng Chi Wah, Yeung Chung Chak and Zhang Xindan, were banned from acting as insurance intermediaries or had their licences suspended for periods ranging from six to 13 months.
The IA said the individuals assisted customers in falsely declaring that they had purchased bank drafts to settle insurance premiums, while undertaking the transactions on their behalf.
Maria Tsui, head of enforcement at the IA, said robust internal controls were vital in preventing money laundering and the financing of terrorism (ML/FT). She stressed that licensed intermediaries must also comply strictly with regulatory requirements.
She urged intermediaries to stay abreast of prevailing rules, noting that ML/FT offences carry heavy penalties.