The Hong Kong Securities and Futures Commission fined Guosen Securities (HK) Brokerage Company the equivalent of approximately US $2 million (HK $15.2 million) for accepting 10,000 third party deposits totaling HK $5 billion for more than 3,500 customers. SFC claimed that Guosen Securities did not have in place sufficient internal controls to adequately monitor for money laundering and terrorism financing and did not follow up on red flags regarding third party deposits or report suspicious activities to the Joint Financial Intelligence Unit as required under HK law. Additionally, SFC noted that the firm did not have adequate policies and procedures to verify the identities of third parties or to determine the relationship between clients and third parties. Over 9,000 of the third party deposits accepted by Guosen were in cash, charged the SFC.