Hong Kong SFC Fines Zheng Da HK$7 Million Over AML and Futures Trading Control Failures

Hong Kong SFC enforcement has resulted in a HK$7 million fine against Zheng Da International Financial Holding Limited over AML/CFT and control failures linked to futures trading.

SFC Finds Weaknesses in Client Trading Controls

According to the SFC material, Zheng Da failed to conduct due diligence or testing on customer supplied systems used by 160 clients between 1 December 2021 and 30 September 2023.

The regulator said the lack of controls left the firm unable to properly assess money-laundering, terrorist-financing and other risks linked to those systems.

Eight Accounts and 176 Trading Instances

The SFC also found that deposits into eight client accounts were inconsistent with the financial profiles declared at account opening, while Zheng Da had no records supporting claimed follow-up enquiries.

The regulator further identified 176 instances where the same client placed buy and sell orders for the same futures contract within the same second and at the same price, but the firm’s monitoring systems did not detect the activity.

Responsible Officer Suspended

The SFC attributed the failures to responsible officer Zhong Hao and suspended his licence for seven months, from 28 September 2026 to 27 April 2027.

The regulator said Zheng Da’s AML/CFT systems and controls were inadequate and ineffective, while also noting the firm and Zhong cooperated with the investigation and otherwise had clean disciplinary records.

Investors should verify whether a broker has effective compliance and client-monitoring controls, not just a valid licence.

For more information about broker licences and regulatory warnings, visit our Brokers Q&A section.

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