Tencent’s WeChat Pay Hong Kong fined HK$875,000 by HKMA for lapses in due diligence
The HKMA’s investigation covered a period of five years up to October 2021, during which time WeChat Pay failed to implement adequate measures and controls
The Hong Kong Monetary Authority (HKMA) on Friday said it has imposed a fine of HK$875,000 (US$112,205) on the local unit of Tencent Holdings’ mobile payment service provider, WeChat Pay Hong Kong, for lapses in implementing customer due diligence procedures.
The HKMA took disciplinary action against WeChat Pay following an investigation that covered a period of more than five years from August 2016 to October 2021, during which time the service provider failed to implement adequate and appropriate controls regarding customer due diligence.
The failures centred around guidelines on anti-money-laundering and counter-financing of terrorism through stored value facilities, according to a statement from the HKMA.
The HKMA said that WeChat Pay did not assess the risks involved after being tipped off by law enforcement agencies to conduct due diligence on mobile numbers involved in potential scams and confirm whether these numbers were linked with its customers.
The company was provided with 1,827 pieces of information involving 500 accounts. Of these, 98 were associated with 84 customers who were subsequently reported to the Hong Kong government’s Joint Financial Intelligence Unit (JFIU).
However, WeChat Pay did not act on the information immediately and delayed taking action for between 80 and 900 days, according to the HKMA.
