According to China Watch, the Everbright Group has been caught in China’s anti-corruption crusade again, with another executive from the group’s subsidiary under investigation.
The Securities and Futures Commission of Hong Kong (SFC) announced on June 16 that it reprimanded China Everbright Securities Co., Ltd. for violating regulatory requirements related to anti-money laundering.
The brokerage arm of China Everbright Group was fined HK$3.8 million (484,000 dollars).
In its investigation, the commission found that Everbright Securities did not adequately and effectively implement control measures from January 2015 to February 2017. As a result, it failed to prevent and reduce the risks of money laundering and terrorist financing related to third-party deposits.
The SFC said it conducted a sample review of the deposits received by Everbright Securities during the relevant period.
During the process, Everbright Securities was found to have failed to identify 178 third-party transactions made through multiple sub-accounts opened by the securities company in a local bank. The deposits amounted to more than HK$250 million (31.9 million dollars).
Everbright Securities is one of numerous arms of the state-owned China Everbright Group caught in China’s anti-corruption whirlpool.
The group, established in 1983, is engaged in banking, insurance, investment management, and other financial services besides securities.
The group’s latest official involved in the corruption investigation is from the subsidiary Everbright Financial Holdings Asset Management Co., Ltd.
On June 16, the Heilongjiang Provincial Commission for Discipline Inspection and Supervision announced on its website that Lu Xing, director of the risk management department of Everbright Financial Holdings Asset Management, was suspected of severe violations of discipline and law. He is currently under investigation.
Lu Xing is the fourth executive of the Everbright Group to be investigated within eight days.
Incomplete statistics show that nine officials from the Everbright Group have been sacked since last year.
In September 2020, Zhu Huimin, chairman of China Everbright Group, was investigated for serious violations of law and discipline during his tenure at the subsidiary Everbright Bank.