Zhongtai International Securities Limited was fined HK $2.6 million (US $335,000) for not having appropriate internal procedures to detect and report deposits to accounts made by third parties. According to SFC, between January 2013 and December 2014, Zhongtai processed more than 300 third-party deposits when the source of the deposits could not be verified, as required by SFC rules. In calculating Zhongtai’s fine, SFC considered the remedial steps the firm took after discovering its handling of third-party deposits was deficient, including engaging an independent reviewer. Two weeks ago, the HK SFC fined Guangdong Securities HK $3 million (US $386,000) for also failing to comply with anti-money laundering requirements in connection with third-party payments. (Click here for background in the article “HK SFC Sanctions Securities and Futures Broker for AML Breaches in Handling Third-Party Payments” in the March 12, 2017 edition of Bridging the Week.) Last week, an officer of Guangdong Securities, Huang Qiang, was suspended from being licensed as a representative or serving as an executive of an SFC registered institution for nine months for his role in the firm’s breach.