HKMA reprimands TNG Asia for inadequate compliance systems

The HKMA has reprimanded and ordered TNG to pay a pecuniary penalty of HK$1.6m for contravening section 8Q of the PSSVFO.

The Hong Kong Monetary Authority (HKMA) has completed an investigation and disciplinary proceedings for TNG (Asia) Limited (TNG) under the Payment Systems and Stored Value Facilities Ordinance (PSSVFO). 

The HKMA has reprimanded and ordered TNG to pay a pecuniary penalty of HK$1.6m for contravening section 8Q of the PSSVFO.

The investigation revealed that TNG did not have adequate and appropriate systems of control for compliance with the relevant anti-money laundering and counter-terrorism financing (AML/CFT) guidelines and supervision guidelines.

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This meant a failure to fulfil the minimum criteria under sections 6(2)(b) (anti-money laundering and counter-terrorist financing measures) and 5(1)(d) (prudential and risk management) of Part 2 of Schedule 3 to the PSSVFO. 

The HKMA considered the seriousness of the investigation findings, the need to send a clear deterrent message to TNG and the industry, TNG's remedial measures to address deficiencies, and its cooperation in resolving concerns. TNG has no previous disciplinary record and has been cooperative in implementing remedial measures. 

The HKMA emphasised the importance of sound governance, internal control systems, and compliance awareness for stored value facility (SVF) licensees. SVF licensees are urged to adopt appropriate governance systems and internal controls to manage the risks arising from their operations.